z or t statisticsif n ge30 we use z if n lt 30 we, Managerial Accounting

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z or t statisticsif n ge30 we use z if n lt 30 we

Z or t Statistics

If n ≥30 we use Z, if, n < 30 we use t statistics. These statistics can be used to test the hypothesis:

Ho: B = O that is, there is no relationship between X and Y
HA: B≠ O There is a significant relationship between X and Y

The level of significance is α = 0.05

The degrees of freedom = n-k-1

Conclusion:

Reject Ho since computed T > tc. This means that there is a significant relationship between the labour costs and number of units.

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Managerial Accounting: z or t statisticsif n ge30 we use z if n lt 30 we

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