T.TEST in Excel (Table of Contents)
T.TEST in Excel
T-Test function in excel is used for calculating the probability of significant difference between two data sets whether any or both of them are under the same population with the same mean. T-Test, which also includes whether the data sets we are using for calculation is a one-tail distribution or two tail distribution with a kind of variance that may be equal or unequal.
T.TEST Formula in Excel:
The Formula for the T.TEST Function in Excel is as follows:
The Formula of T.TEST includes 4 types of arguments:
Array1: This is the first set of the sample you are testing.
Array2: This is the second set of the sample you are comparing.
Tails: This is the number of tails for the distribution. There are two types of tails are there. 1. One-tailed distribution and 2.Two-tailed distribution
Type: There are 3 types of T.Test available in statistics.
- Paired, this examines whether the mean between paired sets is equal.
- Two-sample equal variance examines whether the variance of means between two sets is equal.
- Two-sample unequal variance examines whether the variance of means between two sets is unequal.
In recent versions, T.TEST is introduced. In earlier versions, TTEST is the formula. Still, it is available in recent versions to support compatibility.
How to Use T.TEST Function in Excel?
T.TEST Function in Excel is very simple and easy to use. Let us understand the working of T.TEST in Excel by Some Examples.
The functionality of the T.TEST can be best explained by using an example dataset to get the logic of the T.TEST.
I have Group 1 and Group 2 test scores of a classroom. I need to run T.TEST to find is there a significant difference between these two groups.
Apply T.TEST to get the difference.
The first test is a type of Paired.
The result is 0.04059.
The second test is a type of Two Samples equal variance.
The result is 0.2148.
The third test is a type of Two Sample unequal variance.
The result is 0.2158.
The returned value is generally called as the P-value. If the P-value is <0.05, we can come to the conclusion that the two sets of data have a different mean. Otherwise, the two means are not significantly different from each other.
I have the salary numbers of two different departments. I want to find if the mean of two department’s salaries is significantly different are not.
Apply the T.TEST function to see the difference.
The above formula returns the result as:
Run T.TEST using Analysis Tool Pack
We can run the T.TEST using the analysis tool pack located under the Data ribbon tab.
If you do not find this option in your excel, follow the below steps to unhide this.
Step 1: Go to File and Options
Step 2: Click on Add-Ins
Step 3: Select Excel Add-ins and click Go
Step 4: Select Analysis ToolPak and click OK.
Step 5: This must have enabled the Data Analysis Option.
Follow the below Steps to Run T.TEST using Data Analysis ToolPak
Step 1: Click on Data Analysis under the Data tab.
Step 2: Scroll down find the t-Test.
Step 3: Click on the first t-test, and it will open the below dialogue box.
Step 4: Select the Variable 1 range and Variable 2 range.
Step 5: Once all the above boxes filled, click on the OK button.
It will show a detailed report.
This will show the mean of each data set, their variance, how many observations are taken into consideration, correlation, and P-value.
We need to see the P-value (refer to B26), i.e. 0.000186102 that is way below than the expected P-value of 0.05.
As long as the P-value is less than 0.05, our data is significant.
Things to Remember
- The T.TEST can accept only numerical values, anything other than numerical values; we get the result of #VALUE!
- If the tails value is other than 1 or 2, we will get #NUM! error
- Learn the difference between the One-tailed test and the Two-tailed test to understand it better.
- One of the assumptions is samples have been randomly drawn from the large data.
- Standard P-Value is 0.05 i.e. 5%. If the variance is less than 5%, then your data is significant.
This has been a guide to T.TEST in Excel. Here we discuss the T.TEST Formula in Excel and how to use T.TEST Function in Excel along with excel examples and downloadable excel templates. You may also look at these useful functions in excel –