Testing The Mean For Business Data: Should One Use The Z-Test, T-Test, F-Test, The Chi-Square Test, Or The P-Value Method?

Abstract

In testing the mean of a population or comparing the means from two populations. There are several statistics available: the t-test, z-test, F-test and the chi-square test. Both the t-test and the z-test are usually used for continuous populations, and the chi-square test is used for categorical data. The F-test is used for comparing more than two means. In this paper we will discuss: 1) the conditions on using these tests; 2) the relationship among these test; and 3) illustration of the p-values of these tests by graphs. Some concluding remarks will be provided.