In: Statistics and Probability
Let n1=80, X1=60, n2=80, and X2=40.
a. At the 0.01 level of significance, is there evidence of a significant difference between the two population proportions?
Determine the null and alternative hypotheses.(using "π")
b. Calculate the test statistic, ZSTAT, based on the difference p1−p2.
c.Calculate the p-value.
d. Determine a conclusion.
______ the null hypothesis. There is ______ evidence to support the claim that there is a significant difference between the two population proportions.
e. Construct a 99% confidence interval estimate of the difference between the two population proportions.
___≤π1−π2≤____
a)
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p1 = p2
Alternate Hypothesis, Ha: p1 ≠ p2
b)
p1cap = X1/N1 = 60/80 = 0.75
p2cap = X2/N2 = 40/80 = 0.5
pcap = (X1 + X2)/(N1 + N2) = (60+40)/(80+80) = 0.625
Test statistic
z = (p1cap - p2cap)/sqrt(pcap * (1-pcap) * (1/N1 + 1/N2))
z = (0.75-0.5)/sqrt(0.625*(1-0.625)*(1/80 + 1/80))
z = 3.27
c)
P-value Approach
P-value = 0.0011
As P-value < 0.01, reject the null hypothesis.
d)
Reject the null hypothesis. There is sufficient evidence to support the claim that there is a significant difference between the two population proportions.
e)
Here, , n1 = 80 , n2 = 80
p1cap = 0.75 , p2cap = 0.5
Standard Error, sigma(p1cap - p2cap),
SE = sqrt(p1cap * (1-p1cap)/n1 + p2cap * (1-p2cap)/n2)
SE = sqrt(0.75 * (1-0.75)/80 + 0.5*(1-0.5)/80)
SE = 0.074
For 0.99 CI, z-value = 2.58
Confidence Interval,
CI = (p1cap - p2cap - z*SE, p1cap - p2cap + z*SE)
CI = (0.75 - 0.5 - 2.58*0.074, 0.75 - 0.5 + 2.58*0.074)
CI = (0.0591 , 0.4409)
0.0591 ≤π1−π2≤ 0.4409