Lesson 13.

Inference About Population Proportion

A. Inference about a Proportion

This is used to test the significance if the difference between two sample
proportions.

Example:

A sample survey of a TV program shows that 80 of 200 men and 75 of

250 women dislike the same program. We want to decide whether the difference
between the two sample proportions, 80/200 = 0.40 and 75/250 = 0.30, is
significant or not at 0.05 level of significance.

Step 1. Make assumptions

- Respondents randomly selected

- Distribution is normal

Step 2. State the hypothesis

Ho: There is no significant difference between the two sample proportions.

( P1 = P2 )

Ha: There is significant difference between the two sample proportions.

( P1 ≠ P2 )

Step 3. Set a critical region

Sampling distribution = Z distribution ; n > 30

Level of significance = 0.05 (two tailed)

Z (.05) = + / - 1.96

Step 4. Compute the test statistic

Z = P1 - P2

√ P1q1/n1 + P2q2 /n2

 Where:

P1 = 80 / 200 = 0.40

P2 = 75 / 250 = 0.30

q1 = 1 - P1 = 1 - 0.40 = 0.60

q2 = 1 - P2 = 1 - 0.30 = 0.70

n1 - 200, n2 = 250

Z = 0.40 - 0.30

√ 0.40 (0.6) / 200 + 0.30(0.7) /250

= 0.10 / √ 0.0012 + .00084

= 0.10 / 0.045

Z = 2. 22

Step 5. Make a decision

Z computed = 2.22 > Z critical = 1.96

Therefore. Reject Ho.

There is significant difference between the two sample proportions.men

and women viewership.

B. Inferences About Correlation Coefficients: rxy , rho, rpb,

This is used when you are not only interested in looking into the degree of
the relationship between two variables but also wants to find out whether the
relationship between the set variables is significant or not.
  For variables treated with Pearson Product Moment Correlation ( r xy) ,
Spearman’s Rank Correlation (rho ) and Point Biserial Correlation
(rpb), the significance of these correlation coefficients can be
determined by using the formula.

t = r / √ n - 2/ 1 - r2

where: r can be r xy , rho, rpb

Example:

Assessing that the correlation coefficient computed between performance

and length of service is rxy = 0.73 from a sample of 17 respondents.

Ho: There is no significant relationship computed between performance

and length of service.

Ha: There is significant relationship computed between performance

and length of service.

t = r / √ n-2 / 1 - r2

= 0.73 √ 17 - 2 / 1 - (0.73)2

= 0.73 ( 5.67)

= 4.14

t critical at 0.05 = 2.131 ( two tailed)

t computed = 4.14 > 2.131

Therefore, Reject Ho, there is a significant relationship between

performance and length of service.

Another way to determine the relationship is significant or not is to

compare the computed correlation coefficient with the correlation coefficient
required at 0.05 probability level making use of Appendix C with degree of
freedom n -2.
Example: If the computed correlation coefficient is 0.73 fro 17 respondents ( df=
17 - 2 = 15) , the correlation coefficient required at 0.05 = 0.4821. The computed
r is greater than r (.05, 15). Then the relationship between performance and
length of service is indeed significant at 0.05 probability level.

Exercise 13

1. Globe Telecommunication is trying to decide whether some new lines in a

large community should be installed underground. Because a small surcharge
will be added to telephone bills to pay for the extra installation costs, the
company has decided to survey customers and proceed only if the survey
strongly indicates that more than 60% of all customers favor underground
installation. If 118 of 160 customers surveyed favor underground installation in
spite of the surcharge, what should the company do? Test using 0.05 level of
significance.

2. A study was made to determine whether military cadets who scored high on
conduct also tended to do well academically. A random sample of of 5 cadets
showed the following scores on conduct X and academic average Y .

A. Calculate the Pearson Correlation Coefficient

B. What is the degree of correlation?

C. Test the significance of r , follow the steps in hypothesis testing.( Use the
value if degree of correlation from the table of correlation from previous lesson).

Conduct Academic
Cadet
X Ave. Y

Aiza 76 3.2

Faye 52 2.3

Joselle 78 3.7

Joanna 44 4

Monique 100 1.8