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how to test the difference between two sets of numbers?
given two sets of numbers (eg stock returns), how would you test whether the difference in mean between the two sets is statistically significant, preferably using Excel? An example would be nice, thanks.
Compute the mean and standard deviation of the two sets, then set the Z-value based on the total variance of the two (std dev. of difference = sqrt(std dev 1^2 + std dev 2^2)). Then you have to set your acceptance threshhold (alpha), and do a reverseCDF lookup to determine if the difference between the means falls outside that range.



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