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t-test

A t-test checks whether the difference between two averages, like the average basket before and after a change, is likely real or could be chance.

Select any words here to ask your Maestro about them.

Two stores test a new layout with 30 shoppers per group. In both, the average basket rises from $50 to $54. In test B, baskets vary far more. Which result is more convincing?

Two tests of a new store layout, 30 shoppers per group. Example data.

What it's for: finding out whether the gap between two averages is real or could be luck: before and after a change, version A against B, one store against another. It gives you a p-value.

What it needs: two groups of numbers, their averages, their standard deviations and how many data points each has. With more data, it can detect smaller differences.

Where it breaks: when the groups don't come from a random sample, or when the same customer shows up in both and you skip the paired version. For three groups or more, you need a different test (ANOVA).

How it's used

One in Excel

A t-test in Excel

  1. Old baskets in A2:A31, new ones in B2:B31
  2. marked: =T.TEST(A2:A31, B2:B31, 2, 3)2: two-tailed, because the change could go up or down. 3: Welch's test, which doesn't assume both groups vary the same.
  3. If the same shoppers are in both columns, in the same row order, use 1 instead of 3That's the paired test: it compares each shopper with themselves.
The formula returns the p-value: how often chance alone would give a gap in averages this big or bigger if the layout changed nothing.

When to look closer

Same shoppers, measured twice

30 shoppers, before and after

  1. marked: =T.TEST(A2:A31, B2:B31, 2, 3), as if they were different people: p = 0.30

You measure the same 30 shoppers before and after the new layout. Does it matter if you use the paired test (type 1) or the two-group one (type 3)?

Ask your Maestro about t-test

It answers from the free course page closest to this word, the way it answers while you study.

Example

You: What does "t-test" mean, in plain words?

Your Maestro: I'll explain it with a case of yours: it sticks better than a definition. Which change at work would you like to test with two groups?

Asking about: Answers from the page "Why does pandas count "CDMX" and "cdmx " as different cities?"

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Learn more

  • P-value

    A p-value is the probability of seeing a result at least as extreme as yours if there were truly no effect. The smaller it is, the more surprising your result would be without one.

  • Mean (average)

    To find the mean (the average), add up all the values and divide by how many there are: 15, 7, 8, 13 and 7 add up to 50, and 50 ÷ 5 = 10.

  • Standard deviation

    Standard deviation measures how far data lands from the average: with an average of 30 and an SD of 2, most values fall from 28 to 32. In Excel: =STDEV.S.

  • Confidence interval

    A confidence interval is the range where the whole population's number probably falls, worked out from a sample: 52% ± 5 runs from 47% to 57%.

The whole glossary