In: Statistics and Probability
400 products on line A are examined and 40% are found to be defective, 100 products on line B are examined and 20% are found to be defective. What is the appropriate test statistic?
Solution :
Two proportions z test
Given that,
n1 = 400
1 = 40% = 0.40
x1 = 400 * 0.40 = 160
n2 =100
2 = 20% = 0.20
x2 = 100 * 0.20 = 20
Let be the pooled proportion.
= (x1 +x2)/(n1 + n2) = (160 + 20)/(400 + 100) = 0.36
1 - = 1 - 0..36 = 0.64
The test statistic z is
z =
= (0.40 - 0.20)/[0.36 *0.64*((1/400)+(1/100))]
= 3.73