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

Product moment coefficient, Product Moment Coefficient This gives an i...

Product Moment Coefficient This gives an indication of the strength of the linear relationship among two variables. Note that this formula can be rearranged to have di

TRIANGLES, ABCD is a trapezium AB parallel to DC prove square of AC - squar...

ABCD is a trapezium AB parallel to DC prove square of AC - square of BCC= AB*

Determine how many square centimeters, Determine how many square centimeter...

Determine how many square centimeters of paper are needed to make a label on a cylindrical can 45 cm tall with a circular base having diameter of 20 cm. Leave answer in terms of π.

Mathematics Logic & Set Applications, I have a 40 question assignment for t...

I have a 40 question assignment for this topic, will you be able to complete it?

Service marketing, assignment of marketing mix on healthservices

assignment of marketing mix on healthservices

Horizontal asymptote, The horizontal asymptote of (16x+7)(x^2-5)/(x^2+36).

The horizontal asymptote of (16x+7)(x^2-5)/(x^2+36).

Prove that the poset has a unique least element, Prove that the Poset has a...

Prove that the Poset has a unique least element Prove that if (A, ) has a least element, then (A,≤)  has a unique least element. Ans: Let (A, ≤) be a poset. Suppose the po

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