In: Statistics and Probability
Answer)
Null hypothesis Ho : p1 = p2
Alternate hypothesis Ha : p1 not equal to p2
N1 = 1012 , P1 = 411/1012
N2 = 1062, P2 = 535/1062
First we need to check the conditions of normality that is if n1p1 and n1*(1-p1) and n2*p2 and n2*(1-p2) all are greater than equal to 5 or not
N1*p1 = 411
N1*(1-p1) = 601
N2*p2 = 535
N2*(1-p2) = 527
All the conditions are met so we can use standard normal z table to conduct the test
Test statistics z = (P1-P2)/standard error
Standard error = √{p*(1-p)}*√{(1/n1)+(1/n2)}
P = pooled proportion = [(p1*n1)+(p2*n2)]/[n1+n2]
After substitution
Test statistics z = -4.46
From z table, P(Z<-4.46) = 0
Since the test is two tailed
So, P-Value = 2*0 = 0
As the obtained P-Value is less than the given significance level
We reject the null hypothesis Ho
So, we have enough evidence to conclude that difference exist