Used when two related measurements are taken on the same sample population. Evaluates whether the mean difference between the paired observations is significantly different.
Let each pair have values (X1,X2). Suppose di=X1i−X2i.
dˉ=n1i=1∑ndiandsd=n−1∑(di−dˉ)2
Hypotheses Setup
H0:μd=d0(no mean difference)H1:μd<d0 or μd>d0 or μd=d0