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One Sample Proportion Test: Practical Steps Involved in Test For Proportion of Successes

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Said Varshik

The document describes the steps to perform a one sample proportion test and a two sample proportion test. It includes setting up the null and alternative hypotheses, calculating the standard error, computing the test statistic (Z-value), determining the critical value, and making a decision to reject or fail to reject the null hypothesis based on a comparison of the test statistic and critical value. An example of each test is provided and worked through.

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One Sample Proportion Test: Practical Steps Involved in Test For Proportion of Successes

Uploaded by

Said Varshik
51 views11 pages
The document describes the steps to perform a one sample proportion test and a two sample proportion test. It includes setting up the null and alternative hypotheses, calculating the standard error, computing the test statistic (Z-value), determining the critical value, and making a decision to reject or fail to reject the null hypothesis based on a comparison of the test statistic and critical value. An example of each test is provided and worked through.

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Hypothesis Test-4

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The document describes the steps to perform a one sample proportion test and a two sample proportion test. It includes setting up the null and alternative hypotheses, calculating the standard error, computing the test statistic (Z-value), determining the critical value, and making a decision to reject or fail to reject the null hypothesis based on a comparison of the test statistic and critical value. An example of each test is provided and worked through.

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© All Rights Reserved
Download as PDF, TXT or read online from Scribd
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51 views11 pages

One Sample Proportion Test: Practical Steps Involved in Test For Proportion of Successes

Uploaded by

Said Varshik
The document describes the steps to perform a one sample proportion test and a two sample proportion test. It includes setting up the null and alternative hypotheses, calculating the standard error, computing the test statistic (Z-value), determining the critical value, and making a decision to reject or fail to reject the null hypothesis based on a comparison of the test statistic and critical value. An example of each test is provided and worked through.

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One Sample Proportion Test

Practical Steps involved in Test for Proportion of Successes


Step-1: Set up the Hypothesis as follows:
H0: There is no significant difference between the population
proportion and sample proportion.
H1: There is significant difference between the population
proportion and sample proportion.

Step-2: Calculate the Standard Error (S.E) of the Proportion of


Success as follows:
𝑷𝑸
S.E (𝑷) =
𝒏

Where, n is size of sample,


P= Probability of success,
Q= Probability of failure or
Practical Steps involved in Test for Proportion of Successes
Step-3: Calculate the value of Z as follows:
Where, Sample Proportion of successes, P = Population Proportion of success

𝒑−𝑷
Z=
𝑺.𝑬.(𝒑)

Step-4: Find the critical value of Z at given level of significance

Step-5: Reject the Null hypothesis (H0) if the computed value is more than 1.96 (at 5%
level of significance) or 2.58 (at 1% level of significance) and conclude that there is
significant difference between the mean of two samples.

OR

Accept the Null Hypothesis (H0) if the computed value is less than 1.96 (at 5% level of
significance) or 2.58 (at 1% level of significance) and conclude that there is no
significance difference between the mean of the sample and the mean of the
population.
Test of Significance for Attributes

Case Study - 6. In a big city 325 men out of 600


were found to be smokers. Does this
information support the conclusion that the
majority of men in this city are smokers? (State
the hypotheses clearly)
Test of Significance for Attributes

Discussion of Case Study - 6.

Hint: “Out of” means propertion problem


majority are smoker, i.e. smokers are more
than non-smokers i.e. proportion of smokers
are > ½
Discussion of Case Study - 6.
𝟏
𝑯𝟎 : 𝑷 ≤
𝟐
𝟏
𝑯𝟏 : 𝑷 > (one tailed)
𝟐
𝟏 𝟏
𝑷𝑸 𝟐 𝟐
S.E (𝑷) = = = 𝟎. 𝟎𝟐𝟎𝟒
𝒏 𝟔𝟎𝟎
𝟑𝟐𝟓 𝟏
𝒑−𝑷 −
𝟔𝟎𝟎 𝟐
Z= = = 𝟐. 𝟏
𝑺.𝑬.(𝒑) 𝟎.𝟎𝟐𝟎𝟒
𝒁𝒄𝒂𝒍𝒄𝒖𝒍𝒂𝒕𝒆𝒅 = 𝟐. 𝟏 > 𝒁𝟎.𝟎𝟓 = 𝟏. 𝟔𝟒𝟓
Hence, 𝑯𝟎 𝒊𝒔 𝒓𝒆𝒋𝒆𝒄𝒕𝒆𝒅.
It is concluded that the majority of men in this city
are smokers.
Two Samples Proportion Test
Practical Steps involved in Test for Difference between two Proportions

Step-1: Set up the Hypothesis as follows:

H0: There is no significant difference between the proportions of successes of two samples.

H1: There is no significant difference between the proportions of successes of two samples.

Step-2: Calculate the Standard Error (S.E) of difference between the proportions of successes of two
samples as follows:

𝟏 𝟏
S.E (𝒑𝟏 − 𝒑𝟐 ) = 𝒑𝒒 +
𝒏𝟏 𝒏𝟐

Where, Where p= The pooled estimate for the actual proportion in the population
𝒏𝟏 𝒑𝟏 +𝒏𝟐 𝒑𝟐 𝒙𝟏 +𝒙𝟐
𝑷= or 𝑷 =
𝒏𝟏 +𝒏𝟐 𝒏𝟏 +𝒏𝟐

Where 𝑥1 and 𝑥2 stand for the number of occurrences in the two samples of sizes
Practical Steps involved in Test for Difference between two
Proportions
Step-3: Calculate the value of Z as follows:
𝒑𝟏 − 𝒑𝟐
Z=
𝑺.𝑬(𝒑𝟏 −𝒑𝟐 )

Where, 𝑝1 Sample Proportion of successes in 1st sample,


Sample 𝑝2 Proportion of successes in 2nd sample
Step-4: Find the critical value of Z at given level of significance
Step-5: Reject the Null hypothesis (H0) if the computed value
is more than 1.96 (at 5% level of significance) or 2.58 (at 1%
level of significance) and conclude that there is significant
difference between the mean of two samples.
OR
Accept the Null Hypothesis (H0) if the computed value is less
than 1.96 (at 5% level of significance) or 2.58 (at 1% level of
significance) and conclude that there is no significance
difference between the means of two samples.
Case Study – 7
A machine produced 20 defective articles in a
batch of 400. After overhauling it produced 10
defectives in a batch of 300. Has the machine
improved?
Discussion of Case Study - 7.
Hint: It is a proportion problem.
“Improved”, it is a one tail problem.
Discussion of Case Study - 7.
𝟐𝟎 𝟏𝟎
Let 𝑷𝟏 = , 𝑷𝟐 =
𝟒𝟎𝟎 𝟑𝟎𝟎
𝑯𝟎 ∶ 𝑷𝟏 ≤ 𝑷𝟐 (machine is not improved)
𝑯𝟏 ∶ 𝑷𝟏 > 𝑷𝟐 (improved means less defective one
tailed)
𝟐𝟎 𝟏
𝒏𝟏 = 𝟒𝟎𝟎, 𝒑𝟏 = =
𝟒𝟎𝟎 𝟐𝟎
𝟏𝟎 𝟏
𝒏𝟐 = 𝟑𝟎𝟎, 𝒑𝟐 = =
𝟑𝟎𝟎 𝟑𝟎
Proportion pooled:
𝟏 𝟏
𝒏𝟏 𝒑𝟏 + 𝒏𝟐 𝒑𝟐 𝟒𝟎𝟎 𝟐𝟎 + 𝟑𝟎𝟎 𝟑𝟎 𝟑
𝑷= = =
𝒏𝟏 + 𝒏𝟐 𝟒𝟎𝟎 + 𝟑𝟎𝟎 𝟕𝟎
𝟑 𝟔𝟕
Thus, 𝒒 = 𝟏 − 𝒑 = 𝟏 − =
𝟕𝟎 𝟕𝟎
𝟏 𝟏
S.E (𝒑𝟏 − 𝒑𝟐 ) = 𝒑𝒒 +
𝒏𝟏 𝒏𝟐

𝟑 𝟔𝟕 𝟏 𝟏
= + + = 𝟎. 𝟎𝟏𝟓𝟓
𝟕𝟎 𝟕𝟎 𝟒𝟎𝟎 𝟑𝟎𝟎
𝟏 𝟏
𝒑𝟏 − 𝒑𝟐 −
𝟐𝟎 𝟑𝟎
Z= = = 𝟏. 𝟎𝟖
𝑺.𝑬(𝒑𝟏 −𝒑𝟐 ) 𝟎.𝟎𝟏𝟓𝟓
(a) 𝑨𝒕 ∝= 𝟓%, 𝒁𝒄𝒂𝒍 = 𝟏. 𝟎𝟖 < 𝒁𝟎.𝟎𝟓 = 𝟏. 𝟔𝟒𝟓
Hence, 𝑯𝟎 𝒊𝒔 𝒂𝒄𝒄𝒆𝒑𝒕𝒆𝒅.
Hence the machine is not improved.

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