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

Elementary row operations, Anne, Betty and Carol went to their local produc...

Anne, Betty and Carol went to their local produce store to buy some fruit. Anne bought one pound of apples and two pounds of bananas and paid $2.11. Betty bought two pounds of appl

Trigonometry, If a+b+c = 3a , then cotB/2 cotC/2 is equal to

If a+b+c = 3a , then cotB/2 cotC/2 is equal to

Fractions, kim had 1/2 an orange. she gave Linda 1/4 of this. What fraction...

kim had 1/2 an orange. she gave Linda 1/4 of this. What fraction of the whole orange did Linda get?

complex number z, For complex number z, the minimum value of |z| + |z - co...

For complex number z, the minimum value of |z| + |z - cosa - i sina|+|z - 2(cosa + i sina )| is..? Solution) |z| + |z-(e^ia)| + |z-2(e^ia)| we see.....oigin , e^ia , 2e^ia ,  f

Outer automorphism, (a) An unordered pair fm; ng with 1 ≤ m ≠ n ≤ 6 is ca...

(a) An unordered pair fm; ng with 1 ≤ m ≠ n ≤ 6 is called a duad. List the 15 duads. (b) There are 15 ways to partition {1, ......, 6 } into 3 duads, such as { {1; 2}, {3, 4},

Judgment sampling, Judgment Sampling Here the interviewer chooses whom ...

Judgment Sampling Here the interviewer chooses whom to interview believing that their view is more fundamental because they might be directly affected for illustration, to find

Continuous uniform distribution, Continuous Uniform Distribution Consid...

Continuous Uniform Distribution Consider the interest earned on a bank deposit. Let X equal the value after the decimal point. (Assume no rounding off to the nearest paise.) Fo

Sketch the graph, Sketch the graph of                          y = ( x -...

Sketch the graph of                          y = ( x -1) 2  - 4 . Solution Now, it is a parabola .Though, we haven't gotten that far yet and thus we will have to select

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