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🧑🏼‍🔬Z-Test (Large Sample Tests)

One-sample and two-sample Z-tests — when σ is known and unknown, with paddy field examples and critical values

A researcher measures panicle length in 60 paddy plants from one field and 70 from another. With large samples and a known common standard deviation, she needs the Z-test to determine whether the two fields differ significantly. The Z-test is the workhorse of large sample inference.


Standard Normal Deviate Tests or Large Sample Tests

  • If the sample size n > 30 then it is considered as large sample and if the sample size n < 30 then it is considered as small sample. This distinction is crucial because different statistical tests apply depending on the sample size.

SND Test or One Sample (Z-test)

  • Given by R.A. Fisher.

The Z-test is used when the sample size is large and we want to test whether a sample mean significantly differs from a known or hypothesized population mean. It relies on the standard normal distribution.

Case-I: Population standard deviation (σ) is known Assumptions:

Assumptions:

  • Population is normally distributed
  • The sample is drawn at random

Conditions:

  • Population standard deviation σ is known
  • Size of the sample is large (say n > 30)

Procedure:

  • Let x1, x2, ……… xn be a random sample size of n from a normal population with mean μ and variance σ2.
  • Let x be the sample mean of sample of size “n”
  • Null hypothesis (H0): population mean (µ) is equal to a specified value μ0
  • i.e. H0 : µ = µ0
  • Under H0, the test statistic is
Z-test formula (Case I)
Z-test formula (Case I)
  • i.e. the above statistic follows Normal Distribution with mean “0” and variance “1”. If the calculated value of Z < table value of Z at 5% level of significance, H0 is accepted and hence we conclude that there is no significant difference between the population mean and the one specified in H0 as µ0.
Level of SignificanceTwo-tailed testOne-tailed test
10% (0.10)1.6451.28
5% (0.05)1.961.645
1% (0.01)2.5762.326

Case-II: If σ is not known

When the population standard deviation is unknown but the sample size is large, we substitute the sample standard deviation (s) in place of σ. For large samples, this substitution is valid because s is a reliable estimate of σ.

Assumptions:

  • Population is normally distributed
  • Sample is drawn from the population should be random
  • We should know the population mean

Conditions:

  • Population standard deviation σ is not known
  • Size of the sample is large (say n > 30)
  • Null hypothesis (H0): µ = µ0 under H0, the test statistic
Z-test formula (Case II)
Z-test formula (Case II)
  • If the calculated value of Z < table value of Z at 5% level of significance, H0 is accepted and hence we conclude that there is no significant difference between the population mean and the one specified in H0 otherwise we do not accept H0.
  • The table value of Z at 5% level of significance = 1.96 and table value of Z at 1% level of significance = 2.58.

IMPORTANT

Memorize these critical Z-values: 5% LOS = 1.96 and 1% LOS = 2.58. These are used in all large-sample Z-tests.


Two sample Z-Test or Test of significant for difference of means

This test is used when we want to compare the means of two independent populations using large samples. It answers the question: “Do the two population means differ significantly?”

Case-I: When σ is known

Assumptions:

  • Populations are distributed normally
  • Samples are drawn independently and at random

Conditions:

  • Populations standard deviation σ is known
  • Size of samples are large

Procedure:

  • Let x1 be the mean of a random sample of size n1 from a population with mean µ1 and variance σ22
  • Let x2 be the mean of a random sample of size n2 from another population with mean µ2 and variance σ22
  • Null hypothesis H0: σ1 = σ2
  • Alternative Hypothesis H1: σ1 ≠ σ2
  • i.e. The null hypothesis states that the population means of the two samples are identical. Under the null hypothesis the test statistic becomes
Two-sample Z-test formula
Two-sample Z-test formula
  • i.e. the above statistic follows Normal Distribution with mean “0” and variance “1”. If σ12 = σ22 = σ2 (say) i.e. both samples have the same standard deviation then the test statistic becomes
Two-sample Z-test formula with equal variances
Two-sample Z-test formula with equal variances
  • If the calculated value of |Z| < table value of Z at 5% level of significance, H0 is accepted.
  • Otherwise rejected. If H0 is accepted means, there is no significant difference between two population means of the two samples are identical.

Example: The Average panicle length of 60 paddy plants in field No. 1 is 18.5 cms and that of 70 paddy plants in field No. 2 is 20.3 cms. With common S.D. 1.15 cms. Test whether there is significant difference between two paddy fields w.r.t panicle length.

Solution:

  • Null hypothesis: H0: There is no significant difference between the means of two paddy fields w.r.t. panicle length.
  • H0: μ1 = μ2
  • Under H0, the test statistic becomes
Z-test example setup
Z-test example setup
Z-test example equation
Z-test example equation
  • Substitute the given values in equation (1), we get
Z-test example calculation
Z-test example calculation
  • Calculated value of Z = 8.89
  • Calculated Value of Z > table value of Z at 5% LOS (1.96), H0 is rejected. This means, there is highly significant difference between two paddy fields w.r.t. panicle length.

Since the calculated Z value (8.89) is far greater than the critical value (1.96), we can conclude with high confidence that the difference in panicle length between the two fields is real and not due to chance.


Case-II: When σ is not known

Assumptions:

  • Populations are normally distributed
  • Samples are drawn independently and at random

Conditions:

  • Population standard deviation σ is not known
  • Size of samples are large

When σ is not known, we use the sample variances (s12 and s22) to estimate the population variances. This is acceptable for large samples.

Null hypothesis H0: μ1 = μ2

  • Under the null hypothesis the test statistic becomes
Two-sample Z-test formula when sigma unknown
Two-sample Z-test formula when sigma unknown
Two-sample Z-test formula when sigma unknown (continued)
Two-sample Z-test formula when sigma unknown (continued)
  • If the calculated value of |Z| < table value of Z at 5% level of significance, H0 is accepted otherwise rejected.

Example

  • A breeder claims that the number of filled grains per panicle is more in a new variety of paddy ACM.5 compared to that of an old variety ADT.36. To verify his claim a random sample of 50 plants of ACM.5 and 60 plants of ADT.36 were selected from the experimental fields.
  • The following results were obtained:
Z-test example data table
Z-test example data table

Sol:

  • Null hypothesis H0: μ1 = μ2 (i.e. the average number of filled grains per panicle is the same for both ACM.5 and ADT.36)
  • Under H0, the test statistic becomes
Z-test example solution setup
Z-test example solution setup
Z-test example solution equation
Z-test example solution equation
  • Substitute the given values in equation (1), we get
Z-test example final calculation
Z-test example final calculation
  • Calculated value of Z > Table value of Z at 5% LOS (1.96), H0 is rejected. We conclude that the number of filled grains per panicle is significantly greater in ACM.5 than in ADT.36

This result supports the breeder’s claim — the new variety ACM.5 does produce significantly more filled grains per panicle compared to the old variety ADT.36.


Summary Table

ConceptKey PointExam Tip
Given byR.A. FisherStandard Normal Deviate test
Large samplen > 30Small sample (n < 30) → use t-test
Z at 5% LOS1.96Memorise this
Z at 1% LOS2.58Memorise this
σ knownUse σ directly in formulaMore precise
σ unknownSubstitute sample S.D. (s)Valid for large n
One-sampleCompare sample mean to population meanH0: μ = μ0
Two-sampleCompare means of two populationsH0: μ1 = μ2

TIP

Critical Z-values to memorise: 5% LOS = 1.96 (approximately 2), 1% LOS = 2.58 (approximately 2.6). These never change regardless of sample size.


Summary Cheat Sheet

Concept / TopicKey Details
Z-test given byR.A. Fisher — Standard Normal Deviate test
Large samplen > 30; small sample = n < 30
Z at 5% LOS1.96
Z at 1% LOS2.58
One-sample Z-testCompare sample mean with population mean; H₀: μ = μ₀
Two-sample Z-testCompare means of two populations; H₀: μ₁ = μ₂
σ knownUse σ directly in formula
σ unknown (large n)Substitute sample S.D. (s) — valid for large samples
Z-statisticZ = (x̄ - μ₀) / (σ/√n) for one-sample
Two-sample formulaZ = (x̄₁ - x̄₂) / √(σ₁²/n₁ + σ₂²/n₂)
Equal variancesZ = (x̄₁ - x̄₂) / (σ × √(1/n₁ + 1/n₂))
Decision rule
Normal distributionZ follows N(0, 1) — mean 0, variance 1
AssumptionsPopulation normally distributed, sample drawn randomly
When to use Z-testn > 30, σ known or estimated from large sample
When NOT to usen < 30 and σ unknown → use t-test instead
SignificanceReject H₀ → difference is real, not due to chance
Accept H₀Difference is due to sampling fluctuation
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