Laura J. answered 04/18/16
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Business Professional with MBA and MS in Finance
The mean of the differences is normally associated with paired T test. For example, you have two sets of data:
Set A-> 1,4,7,8,6 Set B->2,7,5,10; the mean of the differences is the average of the differences of all the paired sets. IE AVERAGE( (2-1) + (7-4) +(5-7)....). This is normally seen within a hypothesis testing scenario. So the Null hypothesis will be Hnull Mean=0; and the alternative hypothesis may be Halternative: Mean<>0. You then compare the T statistic of your data set to that of the T critical value that is set based on your confidence level, and decide whether or not to reject the null. Hope this helps.