Explain why using the t statistic may be an appropriate alte

Explain why using the t statistic may be an appropriate alternative to using a z-score (use the concept of estimated standard error to justify your answer

Solution

A z statistic is used only when the population sd is known, but in case of unknown population standard deviation sample sd is used to find the test statistic and the same formula is replaced by sample standard deviation which is known as t statistic. In real life population sd is unknown for maximum cases thus t statistic is a better alternative for z statistic.