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Hypothesis Tests for Proportions

Hypothesis testing is covered in the MiC Quality Advanced Statistics Course.

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Hypothesis Test for Proportions

The hypothesis test for proportions is a type of hypothesis test used to compare proportions.

The tests in this topic are used when the sample sizes are reasonably large, and so the binomial distribution can be approximated by the normal distribution. If the sample sizes are small an alternative is to use a Chi-Square test.

Comparing Proportions

This test is used for large samples to test the hypothesis:

H0: the proportion is the same in both populations
H1: the proportions are different/the proportion is greater for process 1 than process 2

The value of the Z statistic is calculated from:

where:

p1 and p2: the proportions in each sample
X1 and X2: the number possessing the characteristic in each sample
n1 and n2: the sample size

The p-value can be obtained from Excel using the function:

one-tail test: = 1 - NORMSDIST(Z0)
two-tail test: = (1 - NORMSDIST(Z0))/2

Alternatively the critical values can be found in the t-tables.

Proportion Against a Specified Value

This test is used for large samples to test the hypothesis:

H0: the proportion is the same in both populations
H1: the proportion is [different to/greater than/less than] the specified value

The value of the Z statistic is calculated from:

Where:

the proportion in the sample
the specified value of the proportion

n the sample size

The p-value can be obtained from Excel using the function:

one-tail test: = 1 - NORMSDIST(Z0)
two-tail test: = (1 - NORMSDIST(Z0))/2

Alternatively the critical values can be found in the t-tables.

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