Using Excel, Chapter 8: Hypothesis Testing, Exams of MS Microsoft Excel skills

This function returns the critical value from the z-distribution provided you put in the appropriate area. Left-Tailed Tests: zα. = NORM.S.INV(α). Right-Tailed ...

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Using Excel, Chapter 8:
Hypothesis Testing - One Sample
Excel alone does not conduct complete hypothesis tests1. However, once you calculate the test statistic, Excel
can get the critical values and the P-values needed to complete the test. The functions used to get critical
values and P-values are demonstrated here.
Chapter 8.2 - Hypothesis Testing About a Proportion 2
The functions demonstrated here use the standard normal (z) distribution.
Chapter 8.3 - Hypothesis Tests About a Mean: σNot Known (t-test) 3
The functions demonstrated here use the t-distribution.
Chapter 8.4 - Hypothesis Tests About a Mean: σKnown 4
The functions demonstrated here use the standard normal (z) distribution.
1Excel does actually have two functions, T.TEST and Z.TEST, that return a P-value for a data set but the alternate hypothesis
is awkward (it only conducts right-tailed tests) and you need the raw data.
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Using Excel, Chapter 8:

Hypothesis Testing - One Sample

Excel alone does not conduct complete hypothesis tests^1. However, once you calculate the test statistic, Excel can get the critical values and the P -values needed to complete the test. The functions used to get critical values and P -values are demonstrated here.

• Chapter 8.2 - Hypothesis Testing About a Proportion 2

The functions demonstrated here use the standard normal (z) distribution.

• Chapter 8.3 - Hypothesis Tests About a Mean: σ Not Known (t-test) 3

The functions demonstrated here use the t-distribution.

• Chapter 8.4 - Hypothesis Tests About a Mean: σ Known 4

The functions demonstrated here use the standard normal (z) distribution.

(^1) Excel does actually have two functions, T.TEST and Z.TEST, that return a P -value for a data set but the alternate hypothesis is awkward (it only conducts right-tailed tests) and you need the raw data.

Chapter 8.2 - Hypothesis Testing About a Proportion

  • Notation
    • Test Statistic = zpˆ = pˆ √^ − (^) pq^ p n
    • Significance Level = α (in decimal form)
    • Critical Values = zα or ±zα/ 2
  • Finding Critical Values Here we use the NORM.S.INV function. NORM.S.INV stands for the inverse of the standard normal distribution (z-distribution). Usage: NORM.S.INV(area to the left of the critical value) This function returns the critical value from the z-distribution provided you put in the appropriate area. Left-Tailed Tests: zα = NORM.S.INV(α) Right-Tailed Tests: zα = NORM.S.INV(1 − α) Two-Tailed Tests: zα/ 2 = ± NORM.S.INV(α/2)
  • Finding P -Values Here we use the NORM.S.DIST function. NORM.S.DIST stands for the standard normal distribution (z-distribution). Usage: NORM.S.DIST(z, Cumulative?) This function returns the area under the curve to the left of z when Cumulative = TRUE. Left-Tailed Tests: P -value = NORM.S.DIST(zpˆ, TRUE) zpˆ should be < 0. Right-Tailed Tests: P -value = 1 - NORM.S.DIST(zpˆ, TRUE) zpˆ should be > 0. Two-Tailed Tests: P -value = 2 (1 − NORM.S.DIST( |zpˆ|, TRUE))

Chapter 8.4 - Hypothesis Tests About a Mean: σ Known

  • Notation
    • Test Statistic = zx¯ = x¯^ √− σ^ μ n
    • Significance Level = α (in decimal form)
    • Critical Values = zα or ±zα/ 2
  • Finding Critical Values Here we use the NORM.S.INV function. NORM.S.INV stands for the inverse of the standard normal distribution (z-distribution). Usage: NORM.S.INV(area to the left of the critical value) This function returns the critical value from the z-distribution provided you put in the appropriate area. Left-Tailed Tests: zα = NORM.S.INV(α) Right-Tailed Tests: zα = NORM.S.INV(1 − α) Two-Tailed Tests: zα/ 2 = ± NORM.S.INV(α/2)
  • Finding P -Values Here we use the NORM.S.DIST function. NORM.S.DIST stands for the standard normal distribution (z-distribution). Usage: NORM.S.DIST(z, Cumulative?) This function returns the area under the curve to the left of z when Cumulative = TRUE. Left-Tailed Tests: P -value = NORM.S.DIST(zx¯, TRUE) z¯x should be < 0. Right-Tailed Tests: P -value = 1 - NORM.S.DIST(z¯x, TRUE) z¯x should be > 0. Two-Tailed Tests: P -value = 2 (1 − NORM.S.DIST( |z¯x|, TRUE))