Assumption of two sample proportions test

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Inference for Comparing 2 Population Proportions (HT for 2 Proportions)

Now we get to the good stuff! We will need to know how to label the null and alternative hypothesis, calculate the test statistic, and then reach our conclusion using the critical value method or the p-value method.

The Test Statistic for a 2 Proportion Test:

What the different symbols mean:

[latex]x_1[/latex] is the number of successes or observations in the first group (not always needed)

[latex]n_1[/latex] is the sample size from the first group (number of people, items, etc… in the study)

[latex]p_1[/latex] is the population proportion for the first group; this will be used in the null and alternative hypotheses as well

[latex]\hat[/latex] is the sample proportion (or percentage) for the first group, given by [latex]\hat = \frac[/latex]

[latex]\hat[/latex] is what is left over from the sample proportion (or percentage) for the first group, given by [latex]\hat = 1 - \hat[/latex]

[latex]x_2[/latex] is the number of successes or observations in the second group (not always needed)

[latex]n_2[/latex] is the sample size from the second group (number of people, items, etc… in the study)

[latex]p_2[/latex] is the population proportion for the second group; this will be used in the null and alternative hypotheses as well

[latex]\hat[/latex] is the sample proportion (or percentage) for the second group, given by [latex]\hat = \frac[/latex]

[latex]\hat[/latex] is what is left over from the sample proportion (or percentage) for the second group, given by [latex]\hat = 1 - \hat[/latex]

[latex]\bar

= \displaystyle \frac[/latex] is the pooled sample proportion, which combines the two sample proportions into a single value

[latex]\bar = 1 - \bar

[/latex]

[latex]\alpha[/latex] is the significance level, usually given within the problem, or if not given, we assume it to be 5% or 0.05

Assumptions when conducting a 2 Proportion Test:

Steps to conduct the 2 Proportion Test:

Example 1: Race/Name Resume Study [1]

In this study, investigators created mock identical resumés, which were sent to job placement ads in Chicago and Boston. Each resumé was randomly assigned either a commonly-white or commonly-black name. In total, 246 out of 2445 commonly-white named resumés received a callback and 164 out of 2445 commonly-black named resumés received a callback. Is there compelling evidence to conclude that callback rates are higher for common white names vs. common black names?

Solution

Since we are being asked for convincing statistical evidence, a hypothesis test should be conducted. In this case, we are dealing with rates or percents from two samples or groups (the applicants with common white names and those with common black names), so we will conduct a 2 Proportion Test.