Large sample test for proportion, Applied Statistics

Large Sample Test for Proportion

A random sample of size n (n > 30) has a sample proportion p of members possessing a certain attribute (success). To test the hypothesis that the proportion p in the population has a specified value p0.

The Null Hypothesis is H0: p = p0.

The Alternative Hypothesis is (i) H1: p ≠ por (ii) H1: p < p0, or (iii) H1: p > p0.

Since n is large, the sampling distribution of  1534_sampling.png  is approximately normal.

If H0 is true, the test statistic z =  931_large sample test.png  is approximately normally distributed.

The critical region for z depending on the nature of H1 and level of significance α is given in the following table:

Rejection Rule for H0: p = p0

Level of significance

10%

5%

1%

Critical region for p    p0

    | z |   >  1.64

   | z |     >   1.96

   | z |     >   2.58

Critical region for p < p0

       z    <   -1.28

     z       <   -1.64

     z      <  -2.33

Critical region for p > p0

      z    >   1.28

     z       >   1.64

     z      >  2.33                              

Posted Date: 9/15/2012 3:28:57 AM | Location : United States







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