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

Logorithms, log base 5 (3-2x) + log base 5 (2+x) = 1

log base 5 (3-2x) + log base 5 (2+x) = 1

Find the shortest paths in the digraph, 1. a) Find the shortest paths from ...

1. a) Find the shortest paths from r to all other nodes in the digraph G=(V,E) shown below using the Bellman-Ford algorithm (as taught in class).  Please show your work, and draw t

Objectives of ones tens and more, Objectives After studying this unit, ...

Objectives After studying this unit, you should be able to 1.  evolve and use alternative activities to clarify the learner's conceptual 2.  understanding of ones/tens/hu

What is plotting points, What is Plotting Points ? How would you go abo...

What is Plotting Points ? How would you go about drawing the graph of y = x2 ? One way to do it is by plotting points. (Your graphing calculator uses this method.) This is

Consecutive positive odd integers 74 what is integer value, The sum of the ...

The sum of the squares of two consecutive positive odd integers is 74. What is the value of the smaller integer? Let x = the lesser odd integer and let x + 2 = the greater odd

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

Subsets of real numbers, is it true or false that all whole numbers are rat...

is it true or false that all whole numbers are rational numbers

Finite difference method, Two reservoirs of equal cross sectional areas (31...

Two reservoirs of equal cross sectional areas (315 m 2 ) and at equal elevations are connected by a pipe of length 20 m and cross sectional area 3 m 2 . The reservoir on the left (

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