Statistical tests are used for making correct interpretation of data analysis results and making conclusions based on significance not on chance occurrences.
Other important rationale is that the conclusions are typically based on sample and we aim to ensure the inferences are relevant for the population (or other sample).
In one of the scenarios, average spend for one sample was $1200 and the other sample has average spend value as $1210. Mathematically, two average values are different, but
- Is the difference significant?
- Is the difference due to chance or has sufficient evidence?
For answering these questions, we could test the difference using statistical tests.
T Test is used for testing mean of a sample or comparing means of two samples.
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