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5. Conduct a test at the a=0,01 level of significance by determining (a) the null and alternative hypotheses, (b) the test st

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Now , the estimate of the sample proportions are ,

\hat{p_1}=\frac{X_1}{n_1}=\frac{116}{251}=0.4622

\hat{p_2}=\frac{X_2}{n_2}=\frac{132}{301}=0.4385

The pooled estimate is ,

\hat{P}=\frac{X_1+X_2}{n_1+n_2}=\frac{116+132}{251+301}=0.4493

(a) The null and alternative hypothesis is ,

H_0:p_1=p_2 Vs  H_1:p_1>p_2

The test is one-tailed test.

(b) The test statistic is ,

Z_{stat}=\frac{p_1-p_2}{\sqrt{\hat{P}(1-\hat{P})(\frac{1}{n_1}+\frac{1}{n_2})}}=\frac{0.4622-0.4385}{\sqrt{0.4493(1-0.4493)(\frac{1}{251}+\frac{1}{301})}}=0.56

(c) The p-value is ,

p-value=P(Z>|Z_{stat}|)=P(Z>0.56)=1-P(Z\leq 0.56)=1-\Phi(0.56)

=1-0.7123=0.288 ; From standard normal distribution table

Decision : Here , p-value=0.288>0.01

Therefore , Do not reject the null hypothesis

Conclsuion :

A. Do not reject the null hypothesis because there is not sufficient evidence to conclude that p1>p2

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