T-Tests

Now that we have our data, let’s discuss how we can evaluate it. One form of analysis is the t-test, which assesses whether the means of two groups are statistically different from each other.

For example, if an analyst wants to study the spending habits of a group of 200 individuals on the East and West coasts. The t-test questions whether the difference between the groups is representative of a true difference between the spending habits of people on the East Coast and people in the West Coast in general, or if it’s likely a meaningless statistical difference.

We’ll go into greater detail on t-tests in the next section. For a walkthrough of this type of analysis, read The T-test.