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T-Test and Z-Test Use for Business Decision Research

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This 4 page paper provides an overview of the use of t-test and z-tests for business decision research. This paper outlines the application of these statistical tests. Bibliography lists 4 sources.

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4 pages (~225 words per page)

File: MH11_MHTZTest.rtf

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in any organized programs at all, but simply leave safety compliance up to their employees. The outcomes of these two kinds of decisions can vary significantly, and the study of these two different populations of business administrators through two distinct population groups could benefit from the use of a t-test or a z-test in the assessment of statistical information. A z-test is utilized when it is valuable to determine differences that exist in the proportions of two different sample populations (Braeger, 2003). The z-test approximates a normal distribution, and as a result, the statistical information utilized can be in the form of a mean or standard deviation for the analysis (Braeger, 2003). In the case of the problem of studying varied populations of business administrators, the researcher might find that they have two different sized populations of subjects, based on a response criteria, and that they can be divided into administrators who use safety incentive programs and administrators who do not. The researcher may want to find out if the proportions of these two populations are the same relative to a demographic characteristic, like location (regionality). The null hypothesis, then, is that the distribution of administrators is the same in two different demographic groups. The alternative hypothesis is the opposite, then, that there is a difference between these two populations based on regionality. The researcher, then, would need to set the level of significance at .05 and "compare the calculated z-test with a tabled z-test. Should the calculated z not fall within the boundary of the tabled z score, the null hypothesis is rejected" (Braeger, 2003). The use of the T-test is valuable for this research study because it allows for a ...

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