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Hypothesis Testing for Population Proportion

Jul 12, 2025

Overview

This lecture covers the process of conducting a hypothesis test for a population proportion using a calculator, focusing on interpreting the P-value and making conclusions.

Performing a 1-PropZTest

  • Use the calculator: go to "Stat" > "Test" > "1-PropZTest".
  • Enter the null hypothesis proportion (P₀), the number of successes (X), sample size (n), and the alternative hypothesis symbol.
  • Example: P₀ = 0.11, X = 43, n = 500, alternative is "<" (less than).
  • The test gives a Z-test statistic of 1.72 and a P-value of 0.04.

Comparing P-value and Significance Level

  • The significance level (α) is typically set at 0.05.
  • Compare the P-value (0.04) to α (0.05).
  • If the P-value is smaller than α, reject the null hypothesis.
  • Small P-value means the sample result is extreme or surprising under the null hypothesis.

Making Conclusions & Interpreting Results

  • When P-value < α: reject the null hypothesis, indicating there is enough evidence for the alternative hypothesis.
  • When P-value > α: fail to reject the null, meaning not enough evidence for the alternative.
  • In the example, since P-value is 0.04 (< 0.05), we reject the null and conclude there is enough evidence that the proportion has decreased.

Key Terms & Definitions

  • Null Hypothesis (H₀) — The statement being tested, usually specifying no change or effect.
  • Alternative Hypothesis (H₁ or Ha) — The statement we are seeking evidence for (e.g., the proportion has decreased).
  • Significance Level (α) — The threshold for rejecting H₀, commonly set at 0.05.
  • P-value — The probability of observing a result as extreme as, or more extreme than, the sample outcome if H₀ is true.
  • Z-test Statistic — A standardized value to assess how far the sample proportion is from the hypothesized proportion.

Action Items / Next Steps

  • Practice running 1-PropZTest with provided data.
  • Review hypothesis test steps and decision rules for interpreting P-values.
  • Prepare to apply these steps to similar hypothesis testing problems.