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

LCM, What is the LCM of 4, 6, 18

What is the LCM of 4, 6, 18

Economics, A mortgage lender seeks to maximize the expected value of its po...

A mortgage lender seeks to maximize the expected value of its portfolio. The portfolio, of course, is the sum of all of the mortgages in it, so no generality is lost by examining t

#rounding off, I am the least two digit number which round off to 100?

I am the least two digit number which round off to 100?

Triple integrals, Consider a circular disc of radius 1 and thickness 1 whic...

Consider a circular disc of radius 1 and thickness 1 which has a uniform density 10 ?(x, y, z) = 1. (a) Find the moment of inertia of this disc about its central axis (that is, the

Decimals, which one of the following examples represents a repeating decima...

which one of the following examples represents a repeating decimal? 0.123123,1.111114,0.777777,4.252525?

Fractions, what is greater than three forths

what is greater than three forths

Infinite limits, Infinite Limits : In this section we will see limits who...

Infinite Limits : In this section we will see limits whose value is infinity or minus infinity.  The primary thing we have to probably do here is to define just what we mean w

Calculate the probability - contingency table, 1) A survey was done where a...

1) A survey was done where a random sample of people 18 and over were asked if they preferred comedies, dramas, or neither. The information gathered was broken down by age group an

Find the area of parallelogram, Find the area of PARALLELOGRAM ? A para...

Find the area of PARALLELOGRAM ? A parallelogram is a four-sided shape, of which the opposite sides are parallel. (Because they are parallel, opposite sides also have the same

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