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Test For Proportion

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Test For Proportion

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© © All Rights Reserved
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Learning Objective

The learner formulates the


appropriate testing hypothesis
on a population proportion
Test for Population
Proportion, p
The test statistic is
We use the z-test for
the proportion to defined by the equation:
conduct a statistical
test for a population
proportion p on the
assumption that np>5
and nq>5.
Real-life Example 1

Beefy Burgee, a fast food restaurant claims that 85% of


the burger fanatics prefer to eat in their place. To test
the claims, a random sample of 90 burger customers
are selected at random and asked what they prefer. If
76 of the 90 burger fanatics said they prefer to eat at
Beefy Burger, what conclusion do we drawn? Use 0.05
level of significance.
SOLUTION

First, we note that p=0.85 so that


q=0.15. Therefore, np=90(0.85)=76.5>5
and nq=90(0.15) = 13.5>5 and we can
proceed to our hypothesis testing.
SOLUTION
The step by step process of the test is shown below:
1.Ho :p=0.85
H₁: p≠ 0.85
2. Level of significance =𝛼 = 0.05

3. Since the alternative hypothesis is of type ≠, we perform


a two tailed test. For the level of significance 𝛼= 0.05 we
obtain 2 critical values ±𝑧 = ±1.96.
SOLUTION
𝑥 76
Now, p’= p’= p’= 0.844
𝑛 90
and from this we compute the test statistics

𝑝 −𝑝 0.844−0.85
z= 𝑝𝑞
z= z=-0.149
(.085)(0.15)
𝑛 90

We see that the test statistic z=-0.149 is between the two critical
values ±𝑧 = ±1.96. Hence, the test value is clearly outside the
critical region. Thus, we decide not to reject the null hypothesis.
Decide which are in direct proportion…

We see that the test statistic z=-0.149 is between the two critical
values ±𝒛 = ±𝟏. 𝟗𝟔. Hence, the test value is clearly outside the
critical region. Thus, we decide not to reject the null hypothesis.

4. To interpret the results, we say that 5% level of


significance, there is not enough evidence to reject the
claim that the proportion of burger fanatics who prefer to
eat at Beefy Burger is 85%.
Real-Life EXAMPLE 2

Haus of Gaz claims that more than two


thirds of the houses in a certain subdivision
use their brand. Do we have reason to
doubt this claim if a random sample of 40
houses in this subdivision, it is found that 25
use the company’s brand. Use 0.01 level of
significance.
Solution
With n=40 and p=2/3 = 0.67 and q=0.33. Therefore,
np=40(0.67)=28.5>5 and nq=40(0.33)=13.2>5 and
we can proceed to hypothesis testing.
The step by step process of the test is shown
below:
1.Ho :p=0.67
H₁: p< 0.67

2. Level of significance =𝛼 = 0.01


Solution
3. Since the alternative hypothesis is of type <, we perform
a two tailed test. For the level of significance 𝛼= 0.01 we
obtain 2 critical values 𝑧 = −2.33.
𝑥 25
Now, p’= p’= p’=0.625
𝑛 40

and from this we compute the test statistics


Solution
′ 0.625−0.67
z=
𝑝 −𝑝
z= z=-0.6053
𝑝𝑞 (0.67)(0.33)
𝑛 40

We see that the test statistic z=-0.6053 is between the two


critical values 𝑧 = −2.33. Hence, the test value is clearly
outside the critical region. Thus, we decide not to reject the
null hypothesis.
4. To interpret the results, we say that 1% level of
significance, there is not enough evidence to reject the
claim that more than 2/3 of the houses in the subdivision
use Haus of Gaz brand.
Summary
Sampling Distribution of sample proportion is a normal
distribution
STANDARDIZED TEST STATISTIC : Z
Sample ′ Hypothesized
𝑝 −𝑝
Proportion
z= 𝑝𝑞
Proportion
q=1-p
𝑛
Sample size
Answers
1. Samira buys 4 pens for 60p.
a. How much does 1 pen cost? 1 pen = 15 p
b. How much would 9 pens cost? 9 pens = £1.35

2. Chad works for 6 hours and gets paid £108.


a. What is his hourly rate of pay? £18/hour
b. How much does he get paid for 9 hours of work? £162

3. A batch of 12 cupcakes requires 90g of sugar. Aaron wants to make a large


batch for a party. How much sugar does he need for 60 cupcakes? 450 g
Thank
You ☺

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