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Key Steps in Population Proportion Hypothesis Testing

Apr 8, 2025

Module 19 Wrap-Up: Hypothesis Tests for a Population Proportion

Overview

This module summarizes the key steps and considerations for conducting a hypothesis test regarding claims about a population proportion.

Four Steps of a Hypothesis Test

Step 1: Determine the Hypotheses

  • Null Hypothesis (H₀): Proposes that the population proportion ( p ) equals a specific value ( p_0 ).
  • Alternative Hypothesis (Hₐ): Suggests the population proportion is either less than, greater than, or not equal to ( p_0 ).

Step 2: Collect the Data

  • Essential to use random selection and random assignment if conducting an experiment.
  • Verify the use of the normal curve to represent distribution:
    • Both ( n \times p_0 ) and ( n \times (1 - p_0) ) should be at least 10.

Step 3: Assess the Evidence

  • Calculate the test statistic (z-score):
    • Formula: [ z = \frac{\hat{p} - p_0}{\sqrt{\frac{p_0(1 - p_0)}{n}}} ]
  • Determine the p-value using StatCrunch or similar tools:
    • If Hₐ is greater than, p-value is the area to the right.
    • If Hₐ is less than, p-value is the area to the left.
    • If Hₐ is not equal, the p-value is double the tail area beyond the test statistic.

Step 4: Give the Conclusion

  • Small p-value: Data unlikely under H₀, leading to rejection of H₀.
  • P-value ≤ Significance Level: Reject H₀ and accept Hₐ.
  • P-value > Significance Level: Fail to reject H₀.
  • Conclusions should be in the context of the research question.

Errors in Hypothesis Testing

  • Type 1 Error: Rejecting H₀ when it is true.
  • Type 2 Error: Failing to reject H₀ when Hₐ is true.
  • Errors occur due to random chance, not procedural mistakes.

Additional Considerations

  • p-value Significance: Probability of the observed sample proportion if H₀ is true.
  • Sample Size Impact:
    • Larger samples increase the likelihood of rejecting H₀ if Hₐ is true.
    • May detect insignificant differences if the sample size is too large.
  • Data Quality:
    • "Garbage in, garbage out": Poor collection methods render results meaningless.
    • Results are specific to the sampled population.