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

What is chain based index numbers?, What is Chain Based Index Numbers? ...

What is Chain Based Index Numbers? A chain based index is one whereas the index is calculated every year by using the previous year as the base year. This kind of index measur

Intervals of validity, I've termed this section as Intervals of Validity si...

I've termed this section as Intervals of Validity since all of the illustrations will involve them. Though, there is many more to this section. We will notice a couple of theorems

Matrix, how to solve for x

how to solve for x

Explain what is symmetry in maths, Symmetry Definition : A line of sy...

Symmetry Definition : A line of symmetry divides a set of points into two halves, each being a reflection of the other. Each image point is also a point of the set. Defin

Find prime implicants, Let E = xy + y't + x'yz' + xy'zt', find (a)   Pri...

Let E = xy + y't + x'yz' + xy'zt', find (a)   Prime implicants of E,  (b)  Minimal sum for E.  Ans:  K -map for following boolean expression is given as: Prime implic

3D Trigometry problems, I have difficuties in working out those 3D trigomen...

I have difficuties in working out those 3D trigomentry problems within teh shortest possible time. Are there any tricks to get through such problems as soon as possible?

Proof for absolute convergence - sequences and series, Proof for Absolute C...

Proof for Absolute Convergence Very first notice that |a n | is either a n or it is - a n depending upon its sign.  The meaning of this is that we can then say, 0 a n +

Initial conditions and boundary conditions, Initial Condition...

Initial Conditions and Boundary Conditions In many problems on integration, an initial condition (y = y 0 when x = 0) or a boundary condition (y = y

Show that the function f is one-one but not onto, Consider the function f: ...

Consider the function f: N → N, where N is the set of natural numbers, defined by f(n) = n 2 +n+1. Show that the function f is one-one but not onto. Ans: To prove that f is one

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