When to reach for the t-test (not the z-test)
Small sample + normal population + unknown variance = t-test. Otherwise reconsider.
The key decision. Before testing a mean you must choose the right distribution. Three conditions point to the -test:
- The population is normally distributed (stated, or reasonable to assume).
- The population variance is unknown — you only have sample data.
- The sample is small (typically ), so you cannot lean on the Central Limit Theorem to rescue a -test.
When is unknown you must estimate it from the sample. That estimate, , is itself a random quantity, so it adds extra uncertainty. The -distribution accounts for this: it looks like the standard normal but with fatter tails, and it depends on a single parameter, the degrees of freedom .
Why ? Computing uses the sample mean , which "uses up" one piece of information from the data values. Only values are then free to vary — hence degrees of freedom.
As grows, the -distribution gets closer to the standard normal .
Cambridge tip. If a question gives you the population variance, or says "it is known that the standard deviation is …", that is a -test, not a -test. The -test is specifically for an unknown variance estimated from the data.
- Use when: normal population, small sample, unknown.
- The -distribution has fatter tails than to absorb the extra uncertainty in .
- Degrees of freedom because uses up one value.
See the full worked example for hypothesis testing for a population mean using the t-test →