How to Use TTEST Function in Excel (5 Methods)

Introduction to TTEST Function in Excel

▶ Function Objective

The TTEST function in Excel is used to determine the probability of a significant difference between two data sets, whether one or both are from the same population and have the same mean.

▶ Syntax

=TTEST(array1,array2,tails,type)

▶ Arguments Explanation

Argument	Required/Optional	Explanation
array1	Required	The first data set
array1	Required	The Second data set
tails	Required	The number of distribution tails is defined. TTEST utilize the one-tailed distribution for tails = 1. TTEST utilize the two-tailed distribution for tails = 2.
type	Required	1 = Paired. 2 = Two-sample equal variance (homoscedastic). 3 = Two-sample unequal variance (heteroscedastic).

▶ Return Parameter

Returns the TTEST probability. Use TTEST to see if two samples came from the same two underlying populations with the same mean.

One-tailed Test

A One-tailed test is a statistical test in which the critical region of distribution is one-sided, meaning it is either greater than or less than a specific value, but not both.

There are two alternatives for the null and alternative hypotheses in a one-tailed test, which correlates to where you position the critical region.

Null: The effect is less than or equal to zero.

Alternative: The effect is greater than zero.

Two-tailed Test

Two-tailed hypothesis tests are also known as nondirectional or two-sided tests.

Null: The effect equals zero.

Alternative: The effect does not equal zero.

Paired TTEST

Paired TTEST is a statistical method for determining if the mean difference between two sets of observations is zero.

Two-Sample TTEST

Two-sample TTEST is used to compare the means of two groups. This test is usually used to see if the means of two populations are different.

Using TTEST Function in Excel

Method 1 – Apply One-Tailed Test to TTEST Function in Excel

The sample dataset contains data on household spending on food in Europe and the United States. Because the samples are independent of one another, a two-sample t-test is used.

We want to see if the means of these two datasets are significantly different. For this, we can use a One-tailed TTEST.

The formula is,

=TTEST(B5:B12,C5:C12,1,1)

Steps:

Enter the formula in cell C15.
Select 1 in the tails section for the One-tailed TTEST.

Press Enter to see the results. Adjust the column widths to see all the data if required.

Method 2 – Use Two-tailed Test to TTEST Function in Excel

The mean is equal to x, which is our null hypothesis. A two-tailed test will determine whether or not the mean is substantially bigger than or less than x.

We will use a Two-tailed TTEST to determine the critical region of the distribution for both the higher and the lower than the specified mean value. The formula is,

=TTEST(B5:B12,C5:C12,2,1)

Steps:

Enter the formula in cell C15.
Select 2 in the tails section for the Two-tailed TTEST.

Press Enter to see the results.

Method 3 – Perform Paired Type to TTEST Function in Excel

A paired TTEST is used to compare the differences between two variables for the same subject.

Each subject or entity is measured twice in a paired sample TTEST, resulting in pairs of observations. Case-control studies and repeated-measures designs are common uses for the paired sample TTEST.

The formula is,

=TTEST(B5:B12,C5:C12,1,1)

Steps: