Using The T Table

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Using the T-Table

Where Population Standard Deviation is not stated, and sample size is under
and equal to 40

(Please read page 231 in the textbook in detail when to use the t-statistic)
The t-distribution
• If the population standard deviation is unknown & not specifically
stated, and your sample size is less than & equal to 40 (n≤40), then
we will need to make use of the T-distribution (instead of the Z)
• The t- distribution (instead of the z distribution) is used to derive the
limits for the confidence level.

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Finding the t-limits
• To find a t-value, the following is required first:

• (a) the level of significance % (1%,5%,10%)


• (b) the sample size (n) which is used to derive the degrees of freedom
(df) which equals (n-1).

• To read of a t-value from the t-table (Table 2 in your textbook


appendix) both the df and an upper tail area is needed. The specified
confidence level provides the upper tail area.

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How to read the t-table
• Using 5% significance level, n= 26.
• df = n -1 = 25 and the upper tail area is 2.5% (i.e. 0.025)
• Reading the table, the value is therefore +-2.060

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The t-table
• Note, that as the sample size increases (the df gets bigger), the t-
limits becomes smaller. This reflects the greater certainty of
estimating σ from the sample standard deviation (s).

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