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WebMay 29, 2024 · Abstract. The t-ratio has not one but two uses in econometrics, which should be carefully distinguished. It is used as a test and also as a diagnostic. I emphasize that the commonly-used ... WebA t -test (also known as Student's t -test) is a tool for evaluating the means of one or two populations using hypothesis testing. A t-test may be used to evaluate whether a single … WebThe test for equality of variances is dependent on the sample size. A rule of thumb is that if the ratio of the larger to smaller standard deviation is greater than two, then the unequal variance test should be used. With a computer one can easily do both the equal and unequal variance t test and see if the answers differ. onoff diamond