Hypothesis Testing

Population Proportion –
Single Population Proportion
 Population Proportion
• The interest is in a section or proportion of a
population
• The random variable takes only binary value
(Yes or No) – Do you like a particular brand?;
Are you satisfied with a product?; etc.
• The distribution of the random variable is thus
a Binary Distribution
• As the sample size increases, the Binomial
Distribution approaches a Normal Distribution
in characteristics
 Population Proportion Contd.

• Then whenever np and nq (where n = number

of trials, p = probability of success and q =
probability of failure) are at least 5, one can
use the normal distribution as a substitute for
the Binary Distribution.
• The cases in Population Proportion:
– Single Population Proportion
– Two Population Proportions
 Single Population Proportion
• The hypothesis to be tested is given by:
: p=
: p≠
• The appropriate test statistic is given by:

Where:
• = sample proportion
• = value of p under the assumption that is true
• = Standard error of sample proportion
 Single Population Proportion
• The value of is computed by:

Where,
=1–
n = Sample size

For a given level of significance α, t values is compared

with the corresponding critical value () to accept of
reject the null hypothesis.
 Example 1 –
Single Population Proportion

• An officer of the health department claims

that 60% of the male population of a village
comprises of smokers. A random sample of 50
males showed that 35 of them were smokers.
Are these sample results consistent with the
claim of the health officer? Use a level of
significance of 0.05.
 Solution – Example 1 –
Single Population Proportion
• Given – n 50; X = 35; α = 5%; = 0.60
• Step 1 – Setting of hypothesis
H0 : p = 0.60 60% = 60/100
H1 : p > 0.60 = 0.60

• Step 2 – Level of significance – 0.05% given (5%)

• Step 3 – Determination of Test Statistic
Since this is a single
population proportion
case one can use the Z
statistic, given by
 Solution – Example 1 –
Single Population Proportion
• Step 4 – Determination of Critical Region

Rejection
Region

0.05

= 1.645

Since it is a one tailed test Critical Value of Z is given by = which in

this case is 1.645
 Solution – Example 1 –
Single Population Proportion
• Step 5 – Computing Value of Test Statistic

• = 35/ 50 = 0.70
• = = = = 0.069 =1-
• = = = 1.44
 Solution – Example 1 –
Single Population Proportion
• Step 6 – Making Decision
– Since the computed value of the Z statistic, 1.44 is
lesser than 1.645 (Z crit. Value) and lies in the
acceptance region, thus we fail to reject the Null
Hypothesis.
– Thus it can be concluded that the proportion of male
smokers is not statistically different from 60%.
• Please note – one should be extremely careful
about the rejection rule and the conclusion of
the Hypothesis Testing.
Thank You