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By Premier Insights

In Fair Lending

Posted September 27, 2018

When to Use a T-score Versus a Z-score in Fair Lending Analysis

 


When is it appropriate to use a t-score rather than a z-score? Will the results of fair lending analysis change if I use one rather than the other? These common questions are addressed in this video, the third part of our series reviewing statistical concepts that are fundamental to fair lending analysis.

Z-scores and t-scores derive from z-distributions and t-distributions respectively. Understanding the distinctions between these two distributions is a prerequisite to understanding the intuition behind selecting the appropriate statistic.

This video provides a short, concise answer to when and why it is appropriate to use a t-score rather than a z-score.


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