Quantitative Methods 2017

What is under the hood of your statistical software? • Compare two normally distributed series with equal variance:

x

- x

1

2

t =

Test quantity. Note common variance

1

1 2 ( 1 n 1

s

+

)

n

2

e = 2[1 - F

( t )]

t ( df 1

+ df 2 )

Two sided test

Cummulative distribution function.