Hypothesis testing of the difference between proportions, Mathematics

Assignment Help:

Hypothesis Testing Of The Difference Between Proportions

Illustration

Ken industrial producer have manufacture a perfume termed as "fianchetto." In order to test its popularity or reputation in the market, the manufacturer carried a random surveyor study in back rank city whereas 10,000 consumers were interviewed after that 7,200 demonstrated preferences. The manufacturer moved also to area Rook town where he interviewed 12,000 consumers out of that 1,0000 demonstrated preference for the product.

Required

Design a statistical test and thus use it to advise the manufacturer regarding the differences in the proportion, at 5 percent level of significance.

Solution

H0 : π1 = π2

H1 : π1 ≠ π2

The critical value for this two tailed test at 5 percent level of significance = 1.96.

 

Now Z = ¦{(P1 - P2) - (Π1 - Π2)/S(P1 - P2)}¦

But as the null hypothesis is π1 = π2, the second part of the numerator disappear that is

π1 - π2 = 0 which will usually be the case at this level.

 

Then Z = ¦ {(P1 - P2)/S (P1 - P2)}¦

Whereas:

 

Sample 1

Sample 2

Sample size

n1 = 10,000

n2 = 12,000

Sample proportion of success

P1 =0.72

P2 = 0.83

Population proportion of success.

Π1

Π2

 

Here S (P1 - P2) = √{(pq/n1) + √(pq/n1)}   

 

Whereas p = (p1n1 + p2n2)/ (n1 + n2)

And q = 1 - p;

∴ in our case

P = {10,000 (0.72) + 12,000 (0.83)}/(10,000 + 12,000)

= 84,000/22,000

= 0.78

∴ q = 0.22

S (P1 - P2) = √{(0.78(0.22)/10,000) + (0.78(12,000)/12,000)}

= 0.00894

= ¦(0.72 - 0.83)/0.00894¦  

=12.3

 

As 12.3 > 1.96, we reject the null hypothesis however accept the alternative. The differences among the proportions are statistically significant. It implies that the perfume is more popular in Rook town rather than in Back rank city.

 


Related Discussions:- Hypothesis testing of the difference between proportions

Difererntial equation, Ask queFind the normalized differential equation whi...

Ask queFind the normalized differential equation which has {x, xex} as its fundamental setstion #Minimum 100 words accepted#

Examples of elimination technique - linear algebra, Explain some examples o...

Explain some examples of Elimination technique of Linear Equations.

Integration, what is integration and how is it important

what is integration and how is it important

An initial species population , An initial species population is y(0) = 300...

An initial species population is y(0) = 3000. At t=0 the population starts to grow exponentially with a doubling time of 2 years. Mark the only correct statement: a)    The per

Young entrepreneur, As a creative and innovative entrepreneur, we are requi...

As a creative and innovative entrepreneur, we are required to invent or improvise a product or service that benefits the society and the economy, so what do you think is it?

Introduction , what states and marketing tasks?

what states and marketing tasks?

Circles, If the distances from origin of the centres of 3 circles x 2 +y 2 ...

If the distances from origin of the centres of 3 circles x 2 +y 2 +2alphaix= a 2 (i=1,2,3) are in G.P. , then length of the tangents drawn to them frm any point on the circles x2+

Find the volume of a cylinder of radius r, Find the volume of a cylinder of...

Find the volume of a cylinder of radius r and height h. Solution : Here, as we mentioned before starting this illustration we actually don't require using an integral to get t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd