Confidence Interval Calculators
Hypothesis Testing for Proportions
Tips about Confidence Interval for Mean when σ is Unknown:
Definations
- Proportion: The ratio of the number of successes to the total number of trials in a given sample. It is usually denoted as p for the population proportion and \(\bar{p}\) for the sample proportion.
- Alternative Hypothesis (\(H_1\)): The statement that contradicts the null hypothesis. It suggests that there is an effect or a difference. For proportions, it might state that the proportion is not equal to (≠), greater than (>), or less than (<) a specified value.
General Steps
- State the Null and Alternative Hypotheses:
- \(H_0: P = P_0 : P ≥ P_0 : P ≤ P_0\)
- \(H_0: P ≠ P_0 : P < P_0 : P > P_0\)
The inequality sign in the Alternative hypothesis indicates the type of tests. i.e., \(H_1\): \(P ≠ P_0\) (two-tailed), \(P > P_0\) (right-tailed), or \(P < P_0\) (left-tailed) - Specify the significance Level (α)
- The common α's are 10%, 5%, and 1%.
- Calculate the test Statistcs (\(z_{\bar{p}}\))
- Calculate the sample proportion \(\bar{p}\) \[\bar{p} = \frac {x}{n}\]
- Compute the standard error for proportion \(δ_{\bar{p}}\) \[δ_{\bar{p}} = \sqrt{\frac{p_0 (1 - p_0)}{n}}\]
- Calculate the z-test statistcs \[z_{\bar{p}} = \frac{\bar{p} - P_0}{\delta_{\bar{p}}}\]
- Determine the critical value of z for the Desired Confidence Level:
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Significance Levels and Z-Critical Values Use the table below to find Z-critical values based on significance levels (α) for both two-tailed and one-tailed tests:
Significance Level (α) \(z_{\alpha/2}\) \(z_{\alpha}\) 0.1 1.645 1.282 0.05 1.960 1.645 0.01 2.576 2.326 N/A N/A where:
\(z_{\alpha}\) is a one-tailed z-critical Value.
\(z_{\alpha/2}\) is a two tailed z-critical valuFeel free to provide a signifcance level in a given space, then I’ll calculate the corresponding \(z_{\alpha/2}\) and \(z_{\alpha}\) for you only!
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- Decision:
- The decision will be made by comparing the \(z_{\bar{p}}\) to the \(z_{\alpha}\).
- If | \(z_{\bar{p}}\) | > |\(z_{\alpha}\)|, reject the \(H_0\).
- If | \(z_{\bar{p}}\) | ≤ |\(z_{\alpha}\)|, fail to reject the \(H_0\).
- Draw the conclusin:
- When interpreting the results of a hypothesis test, it’s essential to consider both the claim being tested and the decision made. Here’s a step-by-step guide to drawing conclusions based on the decision to reject or not reject the null hypothesis (\(H_0\)):
- Follow this step to draw a conclusion
- Null Hypothesis \(H_0\) This represents the default position or the claim being tested.
- Alternative Hypothesis \(H_1\) This is the claim you are trying to find evidence for.
- Reject \(H_0\): Evidence suggests that \(H_0\) is not true.
- Do Not Reject \(H_0\): Evidence is insufficient to conclude \(H_0\) is not true.
- Reject \(H_0\): There is evidence to rejcet the claim.
- Do Not Reject \(H_0\): There is not enough evidences to rejct the claim.
- Reject \(H_0\): There is evidence to support the claim.
- Do Not Reject \(H_0\): There is not enough evidences to support the claim.
- Suppose a company claims that their new training program improves employee productivity by at least 10%. We want to test this claim using a significance level of 0.05.
- The claim is stated in \(H_0\); because the senario indicates the greaterthan or equal to statement (at least 10%) that alligned with the null hypothesis.
- If the decision is reject \(H_0\): Then the conclusion is "Based on the test, there is enough evidences to reject the claim that the training program does improve productivity by at least 10%.
- If the decision is fail to reject \(H_0\): Then the conclusion is "Based on the test, there is not enough evidences to reject the claim that the training program does improve productivity by at least 10%.
- Identify the Claims:
- Make a Decisions:
- Draw a conclusion:
When the claim is \(H_0\):
When the claim is is \(H_1)\:
- Example:
Senarios:
First identifay the claim from the statement:
Decision
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Input |
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Standard Error (δ̅p) | -- |
Z-Test Statistic (z̅p) | -- |
Common Errors:
- Ignoring Assumptions:
- he test for proportions assumes a sufficiently large sample size for the normal approximation to be valid. Check that \(nP_0\) and \(n(1-P_0)\) are both greater than 5.
- Not Considering the Effect Size:
- A small p-value does not necessarily mean the effect is practically significant. Consider the effect size and practical implications.
- Misinterpreting the the result:
- Reject \(H_0\) when abosulate value test statistcs is greater than the absoulate value critical value.
- Sample Size Issues:
- Small sample sizes can lead to inaccurate conclusions. Ensure the sample size is adequate for the test being conducted.
Additional Tips
- Check Assumptions:
- Ensure the sample size is large enough for the normal approximation to hold. Use exact tests (like Fisher’s exact test) for small sample sizes if needed.
- Use Confidence Intervals:
- In addition to hypothesis tests, calculate confidence intervals for the proportion to provide a range of plausible values for the true proportion.
- Understand the Context:
- Interpret results in the context of the problem. A statistically significant result might not be practically significant.
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