Intro to Econometrics
A z-test is a statistical test used to determine whether there is a significant difference between the means of two groups, particularly when the sample size is large (typically over 30) and the population variance is known. It helps in hypothesis testing by allowing researchers to evaluate the likelihood that a sample mean comes from a population with a specific mean, using the standard normal distribution. The z-test is commonly applied in various fields, providing a way to make inferences about populations based on sample data.
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