Hypothesis Test for the Mean with Unknown Variance – Excel Template

Ned Krastev
Ned Krastev

Hypothesis testing allows us to test an idea. This is when we formulate two hypothesis and want to assess whether one of them can be rejected at a given level of certainty. While testing for the mean, the variance of the population can be either known or unknown. In real-life, it is far more common to not know the population variance. That’s why we use Student’s T-distribution more often.

Hypothesis testing is one of the most useful tools for statisticians and data scientists. Whenever we have to test an idea, it comes down to executing a hypothesis test.

Other related topics you might be interested to explore are Confidence Intervals, and Testing for the Mean with known variance.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Statistician, Business Intelligence Analyst, Data Scientist, Portfolio Manager, or Risk Manager.

You can now download the Excel template for free.

Hypothesis testing for the mean is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.