LN's t-Test: A Principled Approach to t-Testing in Single-Cell RNA Sequencing

Single-cell RNA sequencing (scRNA-seq) has revolutionized the study of cellular heterogeneity, yet differential gene expression (DGE) analysis remains hindered by inconsistencies in log fold change (LFC) estimation. Existing methods, such as those implemented in Scanpy and Seurat, rely on log-transformed count data with a pseudocount, introducing a bias that compromises the reliability of the statistical inference. In this work, we propose LNs t-test, a novel approach to DGE testing that circumvents these biases by employing a log-Normal (LN) distribution-based LFC estimator. Our method jointly estimates the probability of non-zero expression and the mean of positive expression values, enabling an asymptotically unbiased and normally distributed LFC estimator with corresponding confidence intervals. Through extensive simulation studies, we demonstrate that LNs t-test outperforms competing methods by reducing false discovery rates and providing more accurate effect size estimates. Notably, we leverage stochastic ordering theory to explain why conventional t-tests systematically mis-classify non-differentially expressed genes under realistic variance conditions. Our approach offers a theoretically principled and computationally efficient alternative for DGE analysis in scRNA-seq, with implications for improving the reliability and interpretability of single-cell transcriptomics studies. Code that implements the results is available on GitHub: https://github.com/okviman/DE-ZILN.