What is t-test in SAP SCM-APO-FCS - Demand Planning?

SAP Term: t-test

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: The t-test, also known as the t-statistic, indicates whether or not an independent variable is correlated to the dependent variable; that is, it tells you whether or not the independent variable helps to explain the dependent variable and, therefore, whether or not you should leave the independent variable in the model. The t-statistic says nothing about the significance of an explanatory variable's magnitude or impact. In other words, a t-statistic of say 4.6 is no more significant than a 2.4; it only means the independent variables associated with those t-statistics are significant in explaining the variation in the dependent variable. The magnitude of that relationship is measured by the coefficient of the independent variable and its unit of measure. The rule of thumb for a t-statistic for determining whether a coefficient of an independent variable is significantly correlated to the dependent variable at a 95% confidence level is a +/- 2.0. However, empirical testing has pro

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• Key Concepts: 
  T-test is a statistical test used in SAP's SCM-APO-FCS Demand Planning component to compare two sets of data. It is used to determine if there is a statistically significant difference between the two sets of data. The t-test is based on the Student's t-distribution, which is a probability distribution that describes the differences between two samples. 
  
  How to use it: 
  The t-test can be used to compare two sets of data in SAP's SCM-APO-FCS Demand Planning component. To use the t-test, first enter the two sets of data into the system. Then, select the “t-test” option from the menu. The system will then calculate the t-test and display the results. 
  
  Tips & Tricks: 
  When using the t-test in SAP's SCM-APO-FCS Demand Planning component, it is important to remember that the t-test only works with two sets of data. If more than two sets of data are entered, the results may not be accurate. Additionally, it is important to remember that the t-test only works with numerical data; it cannot be used with categorical data. 
  
  Related Information: 
  The t-test is just one of many statistical tests available in SAP's SCM-APO-FCS Demand Planning component. Other tests include ANOVA (Analysis of Variance), Chi Square Test, and Correlation Analysis. Additionally, there are many other statistical tests available outside of SAP's SCM-APO-FCS Demand Planning component that can be used for comparison and analysis.