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

Prove gcd value, Let a, b, c 2 Z + . (a) Prove that if a|b, then ac|bc f...

Let a, b, c 2 Z + . (a) Prove that if a|b, then ac|bc for all c. (b) If a|bc, can you conclude that either a|b or a|c? Justify your answer with a proof or a counter example.

Example of regression equation, Example of Regression Equation An inve...

Example of Regression Equation An investment company advertised the sale of pieces of land at different prices. The given table shows the pieces of land their costs and acreag

What is the sample space for this experiment, A die is thrown repeatedly un...

A die is thrown repeatedly until a six comes up. What is the sample space for this experiment? HINT ;A= {6} B={1,2,3,4,5,} Ans: The sample space is = {A, BA, BBA, BBBA, BBBBA.

What is the area of the square in simplified form, If the side of a square ...

If the side of a square can be expressed as a2b 3 , what is the area of the square in simplified form? Since the formula for the area of a square is A = s 2 , then by substitut

Math, Verify Louisville''s formula for y "-y" - y'' + y = 0 in (0, 1) quest...

Verify Louisville''s formula for y "-y" - y'' + y = 0 in (0, 1) question..

How many inches long is the bedroom, Raul's bedroom is 4 yards long. How ma...

Raul's bedroom is 4 yards long. How many inches long is the bedroom? There are 36 inches within a yard; 4 × 36 = 144 inches. There are 144 inches in 4 yards.

Binary, how to divide a binaries

how to divide a binaries

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