Chapter 7. Hypothesis Testing: Introduction to Hypothesis Testing (p-value Approach)
Assumptions of the Z-test
The following assumptions are required to hold in order for a #Z#-test to produce valid conclusions:
- Random sampling
The process of inferential statistics heavily relies on the assumption that the selected sample is representative of the population it is drawn from. Using a random sampling method helps to ensure the representativeness of the sample.
- Independent observations
Two observations are said to be independent when the occurrence of one observation does not influence the chances of the second observation occurring. If the population is at least #10# times as big as the sample, you may assume that the observations are independent.
- Normal sampling distribution
In order for a #Z#-test to produce valid results, the sampling distribution of the #Z#-statistic has to be (approximately) normally distributed.
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