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📚 Statistics with Technology 2e
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9.1 Two Proportions

There are times you want to test a claim about two population proportions or construct a confidence interval estimate of the difference between two population proportions. As with all other hypothesis tests and confidence intervals, the process is the same though the formulas and assumptions are different.

Hypothesis Test for Two Populations Proportion (2-Prop Test)

  1. State the random variables and the parameters in words.
    x1= number of successes from group 1
    x2 = number of successes from group 2
    p1 = proportion of successes in group 1
    p2 = proportion of successes in group 2
  2. State the null and alternative hypotheses and the level of significance
    Ho:p1=p2 or Ho:p1p2=0HA:p1<p2HA:p1p2<0HA:p1>p2HA:p1p2>0HA:p1p2HA:p1p20
    Also, state your α level here.
  3. State and check the assumptions for a hypothesis test
    1. A simple random sample of size n1 is taken from population 1, and a simple random sample of size n2 is taken from population 2.
    2. The samples are independent.
    3. The assumptions for the binomial distribution are satisfied for both populations.
    4. To determine the sampling distribution of p^1, you need to show that n1p15 and n1q15, where q1=1p1. If this requirement is true, then the sampling distribution of p^1 is well approximated by a normal curve. To determine the sampling distribution of p^2, you need to show that n2p25 and n2q25, where q2=1p2. If this requirement is true, then the sampling distribution of p^2 is well approximated by a normal curve. However, you do not know p1 and p2, so you need to use p^1 and instead p^2. This is not perfect, but it is the best you can do. Since n1p^1=n1x1n1=x1 (and similar for the other calculations) you just need to make sure that x1, n1x1, n2x2,and are all more than 5.
  4. Find the sample statistics, test statistic, and p-value
    Sample Proportion:
    n1= size of sample 1n2= size of sample 2p^1=x1n1( sample 1 proportion) p^2=x2n2 (sample 2 proportion) q^1=1p^1 (complement of p^1)q^2=1p^2 (complement of p^2)
    Pooled Sample Proportion, p:
    p=x1+x2n1+n2q=1p
    Test Statistic:
    z=(p^1p^2)(p1p2)pqn1+pqn2
    Usually p1p2=0, since Ho:p1=p2
    p-value: On TI-83/84: use normalcdf(lower limit, upper limit, 0, 1) On R: use pnorm(z, 0, 1)
  5. Conclusion This is where you write reject Ho or fail to reject Ho. The rule is: if the p-value < α, then reject Ho. If the p-value α, then fail to reject Ho.
  6. Interpretation This is where you interpret in real world terms the conclusion to the test. The conclusion for a hypothesis test is that you either have enough evidence to show HA is true, or you do not have enough evidence to show HA is true.

Confidence Interval for the Difference Between Two Population Proportion (2-Prop Interval)

The confidence interval for the difference in proportions has the same random variables and proportions and the same assumptions as the hypothesis test for two proportions. If you have already completed the hypothesis test, then you do not need to state them again. If you haven’t completed the hypothesis test, then state the random variables and proportions and state and check the assumptions before completing the confidence interval step

  1. Find the sample statistics and the confidence interval
    Sample Proportion:
    n1= size of sample 1n2= size of sample 2p^1=x1n1( sample 1 proportion) p^2=x2n2 (sample 2 proportion) q^1=1p^1( complement of p^1)q^2=1p^2 (complement of p^2)
    Confidence Interval:
    The confidence interval estimate of the difference p1p2 is
    (p^1p^2)E<p1p2<(p^1p^2)+E
    where the margin of error E is given by E=zcp^1q^1n1+p^2q^2n2
    zc = critical value
  2. Statistical Interpretation: In general this looks like, “there is a C% chance that (p^1p^2)E<p1p2<(p^1p^2)+E contains the true difference in proportions.”
  3. Real World Interpretation: This is where you state how much more (or less) the first proportion is from the second proportion.

The critical value is a value from the normal distribution. Since a confidence interval is found by adding and subtracting a margin of error amount from the sample proportion, and the interval has a probability of being true, then you can think of this as the statement P((p^1p^2)E<p1p2<(p^1p^2)+E)=C. So you can use the invNorm command on the TI-83/84 calculator or qnorm on R to find the critical value. These are always the same value, so it is easier to just look at the table A.1 in the Appendix.

Homework