What are Statistical Tests?
Statistical tests are a way of mathematically determining whether
two sets of data are significantly different from each other. To do
this, statistical tests use several statistical measures, such as the
mean, standard deviation, and coefficient of variation. Once the
statistical measures are calculated, the statistical test will then
compare them to a set of predetermined criteria. If the data meet
the criteria, the statistical test will conclude that there is a
significant difference between the two sets of data.
There are various statistical tests that can be used, depending on
the type of data being analyzed. However, some of the most
common statistical tests are t-tests, chi-squared tests, and ANOVA
tests.
Types of Statistical Tests
When working with statistical data, several tools can be used to
analyze the information.
1. Parametric Statistical Tests
Parametric statistical tests have precise requirements compared
with non-parametric tests. Also, they make a strong inference from
the data. Furthermore, they can only be conducted with data that
adhere to common assumptions of statistical tests. Some common
types of parametric tests are regression tests, comparison tests, and
correlation tests.
1.1. Regression Tests
Regression tests determine cause-and-effect relationships. They can
be used to estimate the effect of one or more continuous variables
on another variable.
Simple linear regression is a type of test that describes the
relationship between a dependent and an independent variable
using a straight line. This test determines the relationship
between two quantitative variables.
Multiple linear regression measures the relationship
between a quantitative dependent variable and two or more
independent variables, again using a straight line.
Logistic regression predicts and classifies the research
problem. Logistic regression helps identify data anomalies,
which could be predictive fraud.
1.2. Comparison Tests
Comparison tests determine the differences among the group
means. They can be used to test the effect of a categorical variable
on the mean value of other characteristics.
T-test
One of the most common statistical tests is the t-test, which is used
to compare the means of two groups (e.g. the average heights of
men and women). You can use the t-test when you are not aware of
the population parameters (mean and standard deviation).
Paired T-test
It tests the difference between two variables from the same
population (pre-and post-test scores). For example, measuring the
performance score of the trainee before and after the completion of
the training program.
Independent T-test
The independent t-test is also called the two-sample t-test. It is a
statistical test that determines whether there is a statistically
significant difference between the means in two unrelated groups.
For example, comparing cancer patients and pregnant women in a
population.
One Sample T-test
In this test, the mean of a single group is compared with the given
mean. For example, determining the increase and decrease in sales
in the given average sales.
ANOVA
ANOVA (Analysis of Variance) analyzes the difference between the
means of more than two groups. One-way ANOVAs determine how
one factor impacts another, whereas two-way analyses compare
samples with different variables. It determines the impact of one or
more factors by comparing the means of different samples.
MANOVA
MANOVA, which stands for Multivariate Analysis of Variance,
provides regression analysis and analysis of variance for multiple
dependent variables by one or more factor variables or covariates.
Also, it examines the statistical difference between one continuous
dependent variable and an independent grouping variable.
Z-test
It is a statistical test that determines whether two population means
are different, provided the variances are known and the sample size
is large.
1.3. Correlation Tests
Correlation tests check if the variables are related without
hypothesizing a cause-and-effect relationship. These tests can be
used to check if the two variables you want to use in a multiple
regression test are correlated.
Pearson Correlation Coefficient
It is a common way of measuring the linear correlation. The
coefficient is a number between -1 and 1 and determines the
strength and direction of the relationship between two variables.
The change in one variable changes the course of another variable
change in the same direction.
2. Non-parametric Statistical Tests
Non-parametric tests do not make as many assumptions about the
data compared to parametric tests. They are useful when one or
more of the common statistical assumptions are violated. However,
these inferences are not as accurate as with parametric tests.
Chi-square test
The chi-square test compares two categorical variables.
Furthermore, calculating the chi-square statistic value and
comparing it with a critical value from the chi-square distribution
allows you to assess whether the observed frequency is significantly
different from the expected frequency.
7 Essential Ways to Choose the Right
Statistical Test
1. Research Question
The decision for a statistical test depends on the research
question that needs to be answered. Additionally, the research
questions will help you formulate the data structure and research
design.
2. Formulation of Null Hypothesis
After defining the research question, you could develop a null
hypothesis. A null hypothesis suggests that no statistical
significance exists in the expected observations.
3. Level of Significance in Study Protocol
Before performing the study protocol, a level of significance is
specified. The level of significance determines the statistical
importance, which defines the acceptance or rejection of the null
hypothesis.
4. The Decision Between One-tailed and Two-
tailed
You must decide if your study should be a one-tailed or two-tailed
test. If you have clear evidence where the statistics are leading in
one direction, you must perform one-tailed tests. However, if there
is no particular direction of the expected difference, you must
perform a two-tailed test.
5. The Number of Variables to Be Analyzed
Statistical tests and procedures are divided according to the number
of variables that are designed to analyze. Therefore, while choosing
the test , you must consider how many variables you want to
analyze.
6. Type of Data
It is important to define whether your data is continuous,
categorical, or binary. In the case of continuous data, you must also
check if the data are normally distributed or skewed, to further
define which statistical test to consider.
7. Paired and Unpaired Study Designs
A paired design includes comparison studies where the two
population means are compared when the two samples depend on
each other. In an unpaired or independent study design, the results
of the two samples are grouped and then compared.
