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

Cylinder - three dimensional spaces, Cylinder The below equation is th...

Cylinder The below equation is the common equation of a cylinder. x 2 /a 2 + y 2 /b 2 = 1 This is known as a cylinder whose cross section is an ellipse.  If a = b we

How many relations are possible from a set, How many relations are possible...

How many relations are possible from a set A of 'm' elements to another set B of 'n' elements?     Ans: A relation R from a set A to other set B is specified as any subset of A

Ratios, the ratio of boys to girls in the sixth grade is 2:3 if there are ...

the ratio of boys to girls in the sixth grade is 2:3 if there are 24 boys, how many are girls?

Remainder when 7^103 is divided by 24 , Find the remainder when 7^103 is di...

Find the remainder when 7^103 is divided by 24 Solution) we know by the concept of mod that.....   49 is congruent to 1 mod 24(means if 1 is subtracted fom 49 u get 48 which is

Algebra 1, how do you factor a trinomial into a binomial ?

how do you factor a trinomial into a binomial ?

Radius of convergence - sequences and series, Radius of Convergence We ...

Radius of Convergence We will be capable to illustrate that there is a number R so that the power series will converge for, |x - a| R.  This number is known as the radius of

Classical probability, Classical Probability Consider the experiment o...

Classical Probability Consider the experiment of tossing a single coin. Two outcomes are possible, viz. obtaining a head or obtaining a tail. The probability that it is a tail

Index shift - sequences and series, Index Shift - Sequences and Series ...

Index Shift - Sequences and Series The main idea behind index shifts is to start a series at a dissimilar value for whatever the reason (and yes, there are legitimate reasons

#title.automotive cruise control system., What are some of the interestingm...

What are some of the interestingmodern developments in cruise control systems that contrast with comparatively basic old systems

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