In: Statistics and Probability
Conduct a test at the alpha equals 0.01 level of significance by determining (a) the null and alternative hypotheses, (b) the test statistic, and (c) the P-value. Assume the samples were obtained independently from a large population using simple random sampling. Test whether p 1 greater than p 2. The sample data are x 1 equals 125, n 1 equals 253, x 2 equals 135, and n 2 equals 309.
2) Using P-value approach
P-value = P(Z > z)
=P(Z > 1.353)
= 1- P(Z< 1.353)
= 1- 0.9120 .......from normal table
= 0.0880
P-value = 0.0880
Reject Ho if p-value < alpha
alpha= 0.01
P-value =0.0880 > alpha= 0.01
Do not reject Ho
we may conclude that the data do not provide sufficient evidence to support the claim that p1 is greater than p2