Microsoft Excel for statistics > Hypothesis Test in Excel

This article covers z-tests in Excel. If you have a small sample, or don’t know the population standard deviation, you should run a Student’s t test. See: How to do a T Test in Excel.

## Hypothesis Test in Excel: Overview

Microsoft Excel contains a powerful statistical package where you can calculate everything from means and medians to chi-square. You can also run a hypothesis test. That said, Excel isn’t really an intuitive package when it comes to more advanced functions, like a Hypothesis Test in Excel for the Population Mean. There’s no single button to press. Instead, you’re going to have to go through a series of short steps — which will feel logical if you’re already comfortable with hypothesis testing. You have a couple of choices for hypothesis testing in Excel using z-scores: using the Data Analysis Toolpak to run a two sample test for means, or you can manually calculate the z-score.

## Hypothesis Test in Excel: Two Sample for Means

Watch the video or read the steps in the article “Two Sample Z Test for Means Excel 2013“:

## Hypothesis Test in Excel: Manual Steps

Step 1: **Type your data into a single column **in Excel. For example, type your data into cells A1:A40.

Step 2: **Click the “Data” tab **and then click “Data Analysis.” If you don’t see the Data Analysis button then you may need to load the Data Analysis Toolpak.

Step 3: **Click “Descriptive Statistics“** and then click “OK.” When the Descriptive Statistics dialog box opens, click “Summary Statistics” and then type the location for a cell where you want your result to appear. For example, type”B1.”

Step 4: **Click “OK.**” A variety of descriptive statistics, like the median and mode, will appear starting in cell B1.

Step 5: **Locate the cells that have the mean and the standard error **results in it. If you typed in cell B1 in Step 3, your mean will be in cell C3 and your standard error will be in cell C4. Take a note of those cell locations.

Step 6: **Type the following formula into cell D1** (assuming your mean is in cell C3 and your SE is in cell C4 — if they are not, you’ll need to adjust the formula):

(C3-0)/C4

**Change the “zero” to reflect the mean in your null hypothesis**. For example, if your null hypothesis states that the mean is $7 per hour, then change the 0 to “7.”

Step 7: **Press “Enter” to get the value of the test statistic. **Compare the value to the accepted value for your mean from the z-table*. If the test statistic falls into the accepted range, then you will* fail to reject the null hypothesis.*

**Warning:** This technique will really only work well for larger sample sizes (>30).

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