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Module 1 - Lesson 1

The document discusses the t distribution, which is a symmetric distribution centered at zero that has a single parameter called degrees of freedom. It is used as an interim tool to calculate confidence intervals and hypothesis testing. The t distribution is associated with the T.DIST function in Excel, which takes parameters x, degrees of freedom df, and a logical value to return the probability that a t-distributed random variable is less than x.

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ameya1981
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36 views63 pages

Module 1 - Lesson 1

The document discusses the t distribution, which is a symmetric distribution centered at zero that has a single parameter called degrees of freedom. It is used as an interim tool to calculate confidence intervals and hypothesis testing. The t distribution is associated with the T.DIST function in Excel, which takes parameters x, degrees of freedom df, and a logical value to return the probability that a t-distributed random variable is less than x.

Uploaded by

ameya1981
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
Download as pdf or txt
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The t Distribution

 Normal distribution
a symmetric continuous distribution, has two parameters, the mean and
std
 Normal distribution
a symmetric continuous distribution, has two parameters, the mean and
std

 Standard Normal distribution


a Normal distribution with mean = 0 and std = 1
The Standard Normal Distribution
 It is symmetric about zero with a fixed standard deviation = 1
The t Distribution, aka the Student’s t Distribution
 A symmetric distribution centered at zero
The t Distribution, aka the Student’s t Distribution
 A symmetric distribution centered at zero
 Has a single parameter called the degrees of freedom or df
The t Distribution, aka the Student’s t Distribution
 A symmetric distribution centered at zero
 Has a single parameter called the degrees of freedom or df
The t Distribution
 Does not have any standalone business application

 Used as an interim tool to calculate confidence intervals and hypothesis


testing
The t Distribution
 Does not have any standalone business application

 Used as an interim tool to calculate confidence intervals and hypothesis


testing

 Has an associated probability density function


The t Distribution
 Does not have any standalone business application

 Used as an interim tool to calculate confidence intervals and hypothesis


testing

 Has an associated probability density function

 Associated Excel functions are the =T.DIST and =T.INV


The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function
The t Distribution, T.DIST function

Syntax:

=T.DIST(x, df, TRUE)


The t Distribution, T.DIST function

Syntax:

=T.DIST(x, df, TRUE)

=T.DIST(1.3, 21, TRUE)


The t Distribution, T.DIST function

Syntax:

=T.DIST(x, df, TRUE)

=T.DIST(1.3, 21, TRUE)


The t Distribution, T.DIST function

1.3
The t Distribution, T.DIST function

= 1 - T.DIST(1.3,21,TRUE)
= 0.1038

1.3
The t Distribution, T.DIST function

= T.DIST(1.3,21,TRUE) - T.DIST(-1,21,TRUE)
= 0.7318

1.3
The t Distribution, T.DIST function

Syntax:

=T.DIST(x, df, TRUE)

We will never use the T.DIST function


with the “FALSE” option
The t Distribution, degrees of freedom
The t Distribution, degrees of freedom

 It is the parameter of the t-distribution


The t Distribution, degrees of freedom

 It is the parameter of the t-distribution

 A mathematical constraint imposed by the data


The t Distribution, degrees of freedom

 It is the parameter of the t-distribution

 A mathematical constraint imposed by the data


 linked to size of data being used
 larger set of data would have greater degrees of freedom
 as degrees of freedom increase the t-distribution becomes closer and
closer to the standard normal distribution

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