t-test

Hi everyone,

I could not find a post, which was suitable to my Problem. I hope you can shortly help me.

In my data set I do have 202 data points (share returns) and did calculate the descriptive statistics (mean, arithmetic middle, max, min, standard deviation...) now I would like to do a t- test (Zero-hypothesis). Is there already an included test in excel (I could only find some, where I do need two data rows, but I only have that one). Or how exactly do I calculate it?

Is it correct to just use this formula?

=(return of the Portfolio - 0)/((varianz/number of data Points)^(1/2))

Unfortunately I am not a statistic expert, but do need a t-test for my data, to clearify if its correct. So I am open for any other suggestions/solutions or just a "thats right"

Thank you so much in advance!! I really love that forum and am super thankful for all your help!

Have a good day
Leo

As you might appreciate some background, hopefully the below will point you in the right direction

http://www.real-statistics.com/stude...sample-t-test/

Hey,

thank you for your quick Reply. I am calculating it this way. Maybe it is just easier if you have a look and tell me if the calculations I am doing are correct? That would be great


To my calculations: the datas are in yearly perspective (stocks) so I first calculate the yearly perspective and then go down to a Monthly perspective (herefor I use geometric, because of the stocks). Hope this makes sense.

Best
Leo

Thank you MrShorty.

If I get it correctly I can either use one of the two formulas you mentioned or just look it up in a t-statistic table and see the probability (1%=2,6; 5%=2,3; 10%=1,69). Or is this not correct?

Otherwise wuhuuu and thank you, glad it will be correct then

Have a good Sunday all of you
Leo