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

Proof of various derivative facts formulas properties, PROOF OF VARIOUS DER...

PROOF OF VARIOUS DERIVATIVE FACTS/FORMULAS/PROPERTIES Under this section we are going to prove several of the different derivative facts, formulas or/and properties which we en

Formulas of surface area - applications of integrals, Formulas of Surface A...

Formulas of Surface Area - Applications of integrals S = ∫ 2Πyds          rotation about x-axis S = ∫ 2Πxds          rotation about y-axis Where, ds = √ 1 + (1+ (dy /

Differential calculus, lim n tends to infintiy ( {x} + {2x} + {3x}..... +{n...

lim n tends to infintiy ( {x} + {2x} + {3x}..... +{nx}/ n2(to the square) )where {X} denotes the fractional part of x? Ans) all no.s are positive or 0. so limit is either positive

Extrema- minimum and maximum values, Extrema : Note as well that while we ...

Extrema : Note as well that while we say an "open interval around x = c " we mean that we can discover some interval ( a, b ) , not involving the endpoints, such that a Also,

Find the coordinates of c , Plot the points A(2,0) and B (6,0) on a graph p...

Plot the points A(2,0) and B (6,0) on a graph paper. Complete an equilateral triangle ABC such that the ordinate of C be a positive real number .Find the coordinates of C   (Ans: (

Example of optimization , A piece of pipe is carried down a hallway i.e 10 ...

A piece of pipe is carried down a hallway i.e 10 feet wide.  At the ending of the hallway the there is a right-angled turn & the hallway narrows down to 8 feet wide. What is the lo

Statistical inference, Statistical inference This is the process of dra...

Statistical inference This is the process of drawing conclusions about attributes of a population based upon information contained in a sample or taken from the population.

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