MGMT 1050 Chapter 12: CH 12 Notes
Document Summary
While the (cid:374)or(cid:373)al distri(cid:271)utio(cid:374)"s shape a(cid:374)d lo(cid:272)atio(cid:374) are influenced by the mean and standard deviation the student-t density function is influenced by a value called degrees of freedom (v) Based on the degrees of freedom, the student-t distribution looks different. The mean of the distribution is always zero, but the variance changes. As one increases the degrees of freedom, the student-t distri(cid:271)utio(cid:374)"s sta(cid:374)dard deviation becomes smaller and approaches 1. Therefore as the degrees of freedom increases, the student-t distribution approaches the standard normal distribution. We find the df value on the formula sheet (if the df value is exactly in between two df values, then use the average t value from those two df values. You can also use the table backwards to figure out approximately what percentage of values are to the right of any t value, given a set number of degrees of freedom.
