Which of the following is a difference between the t-distribution and the standa

Question

Which of the following is a difference between the t-distribution and the standard normal distribution? a. The standard normal distribution is dependent on parameters like degree of freedom, while the t-distribution is not. b. The t-distribution cannot be calculated without a known standard deviation, while the standard normal distribution can be. c. The t-distribution has a larger variance than the standard normal distribution. d. The standard normal distribution's confidence levels are wider than those of the t-distribution.

Explanation / Answer

Answer - Option (C) - The t-distribution has a larger variance than the standard normal distribution.

Explanation: The standard normal distribution is a bell shaped distribution with a mean of and a standard deviation of while t-distribution, which is also similar to normal distribution, is used when mean and standard deviation are not known. The key difference between normal and t-distribution is that the variance of the t-distribution is always greater than standard normal distribution. Also, t-distribution is shorter and flatter in comparison to normal distribution.

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