Returns the one-tailed probability-value of a z-test. For a given hypothesized population mean, μ0, ZTEST returns the probability that the sample mean would be greater than the average of observations in the data set (array)
To see how ZTEST can be used in a formula to compute a two-tailed probability value, see "Remarks" below.
Syntax
ZTEST(array,μ0,sigma)
Array is the array or range of data against which to test μ0
μ0 is the value to test.
Sigma is the population (known) standard deviation. If omitted, the sample standard deviation is used.
Remarks
or when sigma is omitted:
where x is the sample mean AVERAGE(array); s is the sample standard deviation STDEV(array); and n is the number of observations in the sample COUNT(array).
ZTEST represents the probability that the sample mean would be greater than the observed value AVERAGE(array), when the underlying population mean is μ0. From the symmetry of the Normal distribution, if AVERAGE(array) < μ0, ZTEST will return a value greater than 0.5.
The following Excel formula can be used to calculate the two-tailed probability that the sample mean would be further from μ0 (in either direction) than AVERAGE(array), when the underlying population mean is μ0:
=2 * MIN(ZTEST(array,μ0,sigma), 1 - ZTEST(array,μ0,sigma)).
Example
The example may be easier to understand if you copy it to a blank worksheet.
Selecting an example from Help
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