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

Calculate the acceleration time, Question A 22 kW, 3-phase, 415 V, 40 A,...

Question A 22 kW, 3-phase, 415 V, 40 A, 50 Hz, 960 rpm, 0.88 PF squirrel cage induction motor drives a pump. The total inertia of the drives system is 1.2 kg-m2. Determine th

What is the difference between the two models listed above?, E1) What is th...

E1) What is the difference between the two models listed above? Which is more difficult for children to understand? E2) List some activities and word problems that you would exp

Uniform distribution over the interval, High temperatures in certain city i...

High temperatures in certain city in the month of August follow uniform distribution over the interval 60-85 F. What is probability that a randomly selected August day has a Temper

What is the continuously compounded forward rate, At time t an investor s...

At time t an investor shorts a $1 face value zero coupon bond that matures at time T = t and uses the entire proceeds to purchase a zero coupon bond that matures at time

Matrix, parts of matrix and functions

parts of matrix and functions

Lattice or complement lattice, Let  be the set of all divisors of n. Constr...

Let  be the set of all divisors of n. Construct a Hasse diagram for D15, D20,D30. Check whether it is a lattice Or Complement lattice.

Prove the boolean expression, Prove the subsequent Boolean expression: ...

Prove the subsequent Boolean expression: (x∨y) ∧ (x∨~y) ∧ (~x∨z) = x∧z Ans: In the following expression, LHS is equal to:   (x∨y)∧(x∨ ~y)∧(~x ∨ z) = [x∧(x∨ ~y)] ∨ [y∧(x∨

Fuzzy decisionmaking using minimization of regret, why we use decision maki...

why we use decision making using minimization of regret method in uncertainty?

Example of word problems involving money, Example of Word Problems Involvin...

Example of Word Problems Involving Money: A collection of coins consists of nickels, dimes & quarters. The number of quarters is double the number of nickels, and the number o

Decimals, how to make 2.3 into a fraction?

how to make 2.3 into a fraction?

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