ROHINI COLLEGE OF ENGINEERING AND TECHNOLOGY

UNIT-I
TESTING THE HYPOTHESIS
1.2 Test of significance for proportion
Test of significance of single proportion
• To test the significant difference between the sample proportion p and the Population
proportion P we use the statistic
𝑝 −𝑃
• 𝑍= 𝑃𝑄
where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃, n = sample size
√
𝑛

• The formulated Null and Alternative hypothesis is, 𝐻0 : 𝑃 =a specified value

• 𝐻1: 𝑃 ≠ a specified value
1. A coin is tossed 400 times and it turns up head 216 times. Discuss whether the coin may be
regarded as unbiased one.
Solution:
1
Set the null hypothesis 𝐻0 : 𝑃 =
2
1
Set the alternative hypothesis 𝐻1: 𝑃 ≠
2

Level of significance 𝛼= 0.05(5%)

𝑝 −𝑃
The test Statistic 𝑍 = where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
𝑃𝑄
√
𝑛

1 1 1
Given 𝑃 = , 𝑄 = 1−𝑃 = 1− =
2 2 2

216
𝑝= = 0.54, 𝑛 = 400
400
0.51 − 0.5
⇒𝑍= = 1.6
0.5×0.5
√
400

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.96.

Conclusion: Since |Z| = 1.6 < 1.96
Hence Null Hypothesis 𝐻0 is accepted at 5% level of significance.
Hence the coin may be regarded as unbiased
2. In a city of sample of 500 people, 280 are tea drinkers and the rest are coffee drinkers.
Can we assume that both coffee and tea are equally popular in this city at 5% Los.
Solution:
1
Set the null hypothesis 𝐻0 : 𝑃 = (both coffee and tea drinkers are equally popular)
2

MA3251-STATISTICS AND NUERICAL METHODS

 ROHINI COLLEGE OF ENGINEERING AND TECHNOLOGY
1
Set the alternative hypothesis 𝐻1: 𝑃 ≠
2

Level of significance 𝛼= 0.05(5%)

𝑝 −𝑃
The test Statistic 𝑍 = 𝑃𝑄
where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
√
𝑛

1 1 1
Given 𝑃 = , 𝑄 = 1−𝑃 = 1− =
2 2 2

280
𝑝= = 0.56, 𝑛 = 500
500
0.56 − 0.5
⇒𝑍= = 2.68
0.5×0.5
√
500

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.96.

Conclusion: Since |Z| = 2.68 > 1.96
Hence Null Hypothesis 𝐻0 is rejected at 5% level of significance.
Hence both type of drinkers are not popular
3. A manufacturing company claims that atleast 95% of its products supplied confirm to the
specifications out of a sample of 200 products, 18 are defective. Test the claim at 5% Los.
Solution:
Set the null hypothesis 𝐻0 : 𝑃 = 0.95
Set the alternative hypothesis 𝐻1 : 𝑃 ≠ 0.95
Level of significance 𝛼= 0.05(5%)
𝑝 −𝑃
The test Statistic 𝑍 = where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
𝑃𝑄
√
𝑛

Given 𝑃 = 0.95, 𝑄 = 1 − 𝑃 = 1 − 0.95 = 0.05

200 − 18
𝑝= = 0.91, 𝑛 = 200
200
0.91 − 0.95
⇒𝑍= = −2.595
0.95×0.05
√
200

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.96.

Conclusion: Since |Z| = 2.595 > 1.96
Hence Null Hypothesis 𝐻0 is rejected at 5% level of significance.

Test of significance of Difference between two sample proportion

MA3251-STATISTICS AND NUERICAL METHODS

 ROHINI COLLEGE OF ENGINEERING AND TECHNOLOGY
• To test the significance of the difference between the sample proportions 𝑝1 and 𝑝2 we use
the statistic
𝑝1 −𝑝2
• 𝑍= 1 1
√𝑃𝑄(𝑛 +𝑛 )
1 2

• where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃, 𝑛1 , 𝑛2 = sample sizes

• The formulated Null and Alternative hypothesis is,
• 𝐻0 : 𝑃1 = 𝑃2
• 𝐻1: 𝑃1 ≠ 𝑃2
• If P is not known, then
𝑛1 𝑝1 +𝑛2 𝑝2
• 𝑃=
𝑛1 +𝑛2

1. If a sample of 300 units of a manufactured product 65 units were found to be defective

and in another sample of 200 units, there were 35 defectives. Is there significant
difference in the proportion of defectives in the samples at 5% Los.
Solution:
Set the null hypothesis H0 : P1 = P2
Set the alternative hypothesis H1: P1 ≠ P2
Level of significance 𝛼= 0.05(5%)
𝑝1 −𝑝2
The test statistic 𝑍 = 1 1
where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
√𝑃𝑄(𝑛 +𝑛 )
1 2

65 35
Given 𝑛1 = 300, 𝑛2 = 200, 𝑝1 = = 0.2166, 𝑝2 = = 0.175
300 200

𝑛1𝑝1 + 𝑛2 𝑝2 (300)0.2166 + (200)0.175

𝑃= = = 0.0799
𝑛1 + 𝑛2 300 + 200
⇒ 𝑄 = 1 − 𝑃 = 1 − 0.0799 = 0.9201
𝑝1 − 𝑝2 0.2166 − 0.175
⇒𝑍= = = 1.233
1 1 1 1
√𝑃𝑄 (𝑛 + 𝑛 ) √(0.0799)(0.9201) ( + )
1 2 300 200

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.96.

Conclusion: Since |Z| = 1.2333 < 1.96
Hence Null Hypothesis 𝐻0 is accepted at 5% level of significance.
The difference in the proportion of defectives in the samples is not significant.
2. In a large city A, 20% of a random sample of 900 school boys had a slight physical
defect. In another large city B, 18.5% of a random sample of 1600 school boys had the
same defect. Is the difference between the proportions significant?
Solution:
MA3251-STATISTICS AND NUERICAL METHODS
 ROHINI COLLEGE OF ENGINEERING AND TECHNOLOGY
Set the null hypothesis H0 : P1 = P2
Set the alternative hypothesis H1: P1 ≠ P2
Level of significance 𝛼= 0.05(5%)
𝑝1 −𝑝2
The test statistic 𝑍 = 1 1
where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
√𝑃𝑄(𝑛 +𝑛 )
1 2

20 18.5
Given 𝑛1 = 900, 𝑛2 = 1600, 𝑝1 = = 0.2, 𝑝2 = = 0.185
100 100

𝑛1 𝑝1 + 𝑛2 𝑝2 (900)0.2 + (1600)0.185
𝑃= = = 0.1904
𝑛1 + 𝑛2 900 + 1600
⇒ 𝑄 = 1 − 𝑃 = 1 − 0.1904 = 0.8096
𝑝1 − 𝑝2 0.2 − 0.185
⇒𝑍= = = 0.9169
1 1 1 1
√𝑃𝑄 ( + ) √(0.1904)(0.8096) ( + )
𝑛1 𝑛2 900 1600

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.96.

Conclusion: Since |Z| = 0.9169 < 1.96
Hence Null Hypothesis 𝐻0 is accepted at 5% level of significance.
Hence there is no significant difference.

3. Before an increase in excise duty on tea, 800 persons out of a sample of 1000 persons
were found to be tea drinkers. After an increase is excise duty. 800 people were tea
drinkers in a sample of 1200 people. Test whether there is a significant decrease in the
consumption of tea after the increase in excise duty at 5% Los
Solution:
Set the null hypothesis H0 : P1 = P2
Set the alternative hypothesis H1 : P1 > P2
Level of significance 𝛼= 0.05(5%)
𝑝1 −𝑝2
The test statistic 𝑍 = 1 1
where 𝑃 + 𝑄 = 1 ⇒ 𝑄 = 1 − 𝑃
√𝑃𝑄(𝑛 +𝑛 )
1 2

800 800
Given 𝑛1 = 1000, 𝑛2 = 1200, 𝑝1 = = 0.8, 𝑝2 = = 0.667
1000 1200

𝑛1𝑝1 + 𝑛2 𝑝2 (1000)0.8 + (1200) 0.667

𝑃= = = 0.7272
𝑛1 + 𝑛2 1000 + 1200
⇒ 𝑄 = 1 − 𝑃 = 1 − 0.7272 = 0.2728

MA3251-STATISTICS AND NUERICAL METHODS

 ROHINI COLLEGE OF ENGINEERING AND TECHNOLOGY
𝑝1 − 𝑝2 0.8 − 0.667
⇒𝑍= = = 6.88
1 1 1 1
√𝑃𝑄 (𝑛 + 𝑛 ) √(0.7272)(0.2728) ( + )
1 2 1000 1200

Critical value: At 5% level, the tabulated value of 𝑍𝛼 is 1.645.

Conclusion: Since |Z| = 6.88 > 1.645
Hence Null Hypothesis 𝐻0 is rejected at 5% level of significance.
There is a significance decrease in the consumption of tea due to increase in excise duty.

MA3251-STATISTICS AND NUERICAL METHODS