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When conducting a hypothesis test that compares two independent population proportions, the following characteristics should be present:

  1. The two independent samples are simple random samples that are independent.
  2. The number of successes is at least five, and the number of failures is at least five, for each of the samples.
  3. Growing literature states that the population must be at least ten or 20 times the size of the sample. This keeps each population from being over-sampled and causing incorrect results.

Comparing two proportions, like comparing two means, is common. If two estimated proportions are different, it may be due to a difference in the populations or it may be due to chance. A hypothesis test can help determine if a difference in the estimated proportions reflects a difference in the population proportions.

The difference of two proportions follows an approximate normal distribution. Generally, the null hypothesis states that the two proportions are the same. That is, H 0 : p A = p B . To conduct the test, we use a pooled proportion, p c .

The pooled proportion is calculated as follows:

p c = x A + x B n A + n B

The distribution for the differences is:

P A P B ~ N [ 0 , p c ( 1 p c ) ( 1 n A + 1 n B ) ]

The test statistic ( z -score) is:

z = ( p A p B ) ( p A p B ) p c ( 1 p c ) ( 1 n A + 1 n B )

Two types of medication for hives are being tested to determine if there is a difference in the proportions of adult patient reactions. Twenty out of a random sample of 200 adults given medication A still had hives 30 minutes after taking the medication. Twelve out of another random sample of 200 adults given medication B still had hives 30 minutes after taking the medication. Test at a 1% level of significance.

The problem asks for a difference in proportions, making it a test of two proportions.

Let A and B be the subscripts for medication A and medication B, respectively. Then p A and p B are the desired population proportions.

Random variable:

P′ A P′ B = difference in the proportions of adult patients who did not react after 30 minutes to medication A and to medication B.

H 0 : p A = p B

p A p B = 0

H a : p A p B

p A p B ≠ 0

The words "is a difference" tell you the test is two-tailed.

Distribution for the test: Since this is a test of two binomial population proportions, the distribution is normal:

p c = x A + x B n A + n B = 20 + 12 200 + 200 = 0.08 1 p c = 0.92

P A P B ~ N [ 0 , ( 0.08 ) ( 0.92 ) ( 1 200 + 1 200 ) ]

P′ A P′ B follows an approximate normal distribution.

Calculate the p -value using the normal distribution: p -value = 0.1404.

Estimated proportion for group A: p A = x A n A = 20 200 = 0.1

Estimated proportion for group B: p B = x B n B = 12 200 = 0.06

Graph:

Normal distribution curve of the difference in the percentages of adult patients who don't react to medication A and B after 30 minutes. The mean is equal to zero, and the values -0.04, 0, and 0.04 are labeled on the horizontal axis. Two vertical lines extend from -0.04 and 0.04 to the curve. The region to the left of -0.04 and the region to the right of 0.04 are each shaded to represent 1/2(p-value) = 0.0702.

P′ A P′ B = 0.1 – 0.06 = 0.04.

Half the p -value is below –0.04, and half is above 0.04.

Compare α and the p -value: α = 0.01 and the p -value = 0.1404. α < p -value.

Make a decision: Since α < p -value, do not reject H 0 .

Conclusion: At a 1% level of significance, from the sample data, there is not sufficient evidence to conclude that there is a difference in the proportions of adult patients who did not react after 30 minutes to medication A and medication B .

The p -value is p = 0.1404 and the test statistic is 1.47.

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Source:  OpenStax, Statistics i - math1020 - red river college - version 2015 revision a - draft 2015-10-24. OpenStax CNX. Oct 24, 2015 Download for free at http://legacy.cnx.org/content/col11891/1.8
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