p1cap = X1/N1 = 206/315 = 0.654
p1cap = X2/N2 = 142/347 = 0.4092
pcap = (X1 + X2)/(N1 + N2) = (206+142)/(315+347) = 0.5257
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p1 = p2
Alternate Hypothesis, Ha: p1 > p2
Rejection Region
This is right tailed test, for α = 0.05
Critical value of z is 1.645.
Hence reject H0 if z > 1.645
Test statistic
z = (p1cap - p2cap)/sqrt(pcap * (1-pcap) * (1/N1 + 1/N2))
z = (0.654-0.4092)/sqrt(0.5257*(1-0.5257)*(1/315 + 1/347))
z = 6.3
P-value Approach
P-value = 0
As P-value < 0.05, reject the null hypothesis.
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