Critical Value vs T-Distribution

Both terms below come up in the same part of the course, and students mix them up. Here is each one defined on its own, side by side, so you can see where they part company.

Critical value

Confidence intervals

A critical value is a cutoff from a reference distribution, such as z or t, that sets a confidence interval's width or a test's rejection boundary.

A critical value marks how far out on a distribution you go to capture a chosen probability. For a confidence interval it is the number of standard errors that brackets the middle C% of the sampling distribution. For example, a 95% confidence interval for a mean using the normal model uses z=1.96z^* = 1.96, because 95% of the standard normal curve lies within 1.96 standard deviations of the center. With small samples and unknown population spread you instead read tt^* from the tt-distribution using the degrees of freedom.

Full entry for critical value

t-distribution

Random variables and distributions

The t-distribution is a symmetric, bell-shaped curve with heavier tails than the normal, used for inference about a mean when the population SD is unknown.

The tt-distribution accounts for the extra uncertainty of estimating the population standard deviation with the sample standard deviation ss. Its exact shape depends on the degrees of freedom: fewer degrees of freedom give fatter tails, and as they grow the curve approaches the standard normal. For example, a one-sample tt test with n=15n = 15 uses the tt model with 151=1415 - 1 = 14 degrees of freedom. The test statistic is t=xˉμ0s/nt = \frac{\bar{x} - \mu_0}{s / \sqrt{n}}, where xˉ\bar{x} is the sample mean and μ0\mu_0 the hypothesized mean.

Full entry for t-distribution

Where each one fits in the course