Business Statistics

290 Business Statistics

9.6.1  The t Distribution

The t distribution, developed by William Gosset is a family of similar probability distributions with a

specic t distribution depending on a parameter known as the degrees of freedom. For each different

degree of freedom, the t distribution is unique. The t distribution for one degrees of freedom is unique,

as the t distribution for two degrees of freedom and the t distribution for three degrees of freedom.

It is interesting to note that as the number of degrees of freedom increase, the difference between t

distribution and the standard normal distribution tend to be smaller and smaller. ...