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

Area related to circles, railway tunnel of radius 3.5 m and angle aob =90 f...

railway tunnel of radius 3.5 m and angle aob =90 find height of the tunnel

Linear algebra, Let A be an n×n matrix. Then Show that the set U = {u?R^n ...

Let A be an n×n matrix. Then Show that the set U = {u?R^n : Au = -3un} is a Subspace of R^n

Pi, pi to the ten-thousandths

pi to the ten-thousandths

Percentage, there are 300 students in the sixth grade. if 40% of them were ...

there are 300 students in the sixth grade. if 40% of them were girls, how many boys were there?

Probability distributions, Probability Distributions Since the value of...

Probability Distributions Since the value of a random variable cannot be predicted accurately, by convention, probabilities are assigned to all the likely values that the varia

Infinite series, all properties, formulas of infinite series

all properties, formulas of infinite series

Rejection and acceptance regions, Rejection and Acceptance regions All ...

Rejection and Acceptance regions All possible values which a test statistic may either suppose consistency along with the null hypothesis as acceptance region or lead to the re

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