How to interpret p-values and confidence intervals in t-tests

Thu Aug 07 2025

Ever wondered how scientists determine if a new drug works better than the old one, or how marketers know if a campaign truly made an impact?

It's all about statistics, and one of the go-to tools in this realm is the t-test.

In this blog, we're diving into the world of t-tests, p-values, and confidence intervals. Whether you're crunching numbers for a project or just curious about statistical testing, we've got you covered. So grab a coffee, and let's get started!

Related reading: T-test fundamentals: Building blocks of experiment analysis.

Understanding t-tests and their applications

T-tests are handy statistical tools used to compare means between groups. They help us figure out if observed differences are statistically significant or just due to chance. Basically, they're essential for hypothesis testing, especially when dealing with small sample sizes. In well-designed A/B tests with proper randomization, t-tests can also be used to draw causal inferences about the effect of a treatment on an outcome.

There are different types of t-tests, each suited for specific situations:

  • One-sample t-test: This compares a sample mean to a known population mean. For example, if you're studying patients with Everley's syndrome and want to compare their mean blood sodium concentration to a standard value, you'd use this test. It's perfect when you have a single sample and a reference value.

  • Independent two-sample t-test: Use this when comparing means between two separate groups. It tests if the two samples could come from the same population.  Say you're comparing the ARPU (Average Revenue Per User)for a treatment group versus a control group under two different pricing strategies—this test has got you covered. It's ideal for two independent groups.

  • Paired t-test: This one compares means from the same group under different conditions. It accounts for variability between pairs, giving you a more sensitive analysis. If you have matched subjects or repeated measures on the same individuals, this is the test to use. For example, you might measure a person’s body temperature before and after taking a pill to test whether the pill causes a change in temperature.

When conducting t-tests, it's important to consider assumptions like normality (which becomes less critical with large samples, thanks to the Central Limit Theorem) and equal variances. With large enough samples, the t-test and the z-test produce nearly identical results because the t-distribution converges to the normal distribution. If variances aren't equal, Welch's t-test can handle the situation. And interpreting p-values correctly is crucial—a low p-value suggests significant differences, while a high p-value indicates we don't have enough evidence to reject the null hypothesis. Confidence intervals complement p-values by quantifying the precision of our estimates.

Interpreting p-values in t-tests

P-values are a big deal in hypothesis testing. In the context of t-tests, they indicate the likelihood of observing a difference between means as extreme as the one found in your sample, assuming the null hypothesis is true.

Here's how to interpret them:

  • If the p-value is less than your significance level (usually 0.05): You reject the null hypothesis, suggesting there's a statistically significant difference between the means.

  • If the p-value is greater than your significance level: You fail to reject the null hypothesis, indicating insufficient evidence to conclude a significant difference.

But remember, a small p-value doesn't necessarily mean the difference is large or practically meaningful. That's where effect size and confidence intervals come into play, offering additional context about the magnitude and precision of the difference. Likewise, a non-significant p-value doesn't prove the null hypothesis—it just suggests a lack of strong evidence against it.

When working with p-values, be mindful of factors like sample size, variability, and potential confounding variables. These can all influence your results. Sometimes, visualizing the distribution of p-values helps identify patterns or issues in your data, guiding further analysis and decision-making. Proper randomized control helps mitigate confounding and bias, strengthening the validity of your p-values and the conclusions drawn from them.

The role of confidence intervals in t-tests

Confidence intervals are crucial in t-tests because they quantify the uncertainty around the estimated mean difference. They provide a range of plausible values for the true population mean difference, considering sample variability and size.

To calculate a confidence interval for a mean difference in a t-test, you use the sample means, standard errors, and the appropriate t-distribution critical value. In the case of two-tailed tests, Interpreting them is straightforward:

  • If the interval doesn't contain zero: There's a statistically significant difference between the means at your chosen confidence level.

  • If the interval includes zero: You can't conclude a significant difference between the means.

For details on how to handle one-tailed tests, check out this resource.

This aligns with the p-value approach—a confidence interval excluding zero corresponds to a p-value less than the significance level (e.g., 0.05). But confidence intervals offer more—they show the range of plausible values for the true mean difference, not just whether a difference exists.

A 95% confidence interval means that if you were to repeat the same experiment many times, about 95% of those intervals would contain the true mean difference. It reflects the uncertainty that comes from having only a sample rather than the whole population. So, rather than giving a single guess, it gives you a range where the real value is likely to fall, based on your data.

Keep in mind, the width of the confidence interval depends on sample size and variability. Larger samples and lower variability lead to narrower intervals, indicating greater precision in your estimate. So, when reporting t-test results, it's best practice to include both the p-value and the confidence interval for a comprehensive view.

Practical considerations and best practices

Sample size plays a significant role in the reliability of t-test results. Larger sample sizes yield more precise estimates and narrower confidence intervals, increasing the likelihood of detecting true differences. If your sample sizes are small or variances are unequal, Welch's t-test can be a better choice.

To ensure accurate interpretation of t-test results, here are some tips:

  • Avoid common pitfalls: Don't confuse statistical significance with practical significance. A significant p-value doesn't always imply a meaningful difference in real-world terms.

  • Be cautious with multiple t-tests: Conducting many tests increases the risk of Type I errors (false positives). Adjust your significance level accordingly by correcting for multiple comparisons  or consider alternative methods.

  • Interpret p-value histograms wisely: When looking at p-value histograms, patterns may reveal issues with your data or tests. Unusual patterns might warrant consulting a statistician.

T-tests are most suitable when your data comes from a roughly normal distribution, but with large sample sizes, the Central Limit Theorem often makes this assumption less critical. If you’re working with small samples or severely non-normal data, check out for alternatives.

Remember, t-tests are just one tool in your statistical toolkit. Consider the context and limitations of your data, and use t-tests alongside other methods like confidence intervals and effect sizes for a comprehensive understanding. Platforms like Statsig can help streamline this process, offering robust tools for statistical analysis and experimentation.

Closing thoughts

Grasping t-tests, p-values, and confidence intervals is key to making sense of statistical analyses. These tools help determine whether differences in data are meaningful or just happenstance. By understanding and applying these concepts, you empower yourself to make informed, data-driven decisions.

If you're eager to learn more or need tools to assist with your analysis, platforms like Statsig offer great resources to deepen your understanding and streamline your work.

Happy analyzing!



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