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Setting Up a Test for the Difference Between Two Population Proportions

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A two-proportion test states $H_0: p_1 = p_2$, equivalently $p_1 - p_2 = 0$, against $H_a$ with $>$, $<$, or $\ne$, after both parameters are defined in context. Because the null says the two populations share one proportion, the test pools: $\hat{p}_c = \frac{x_1 + x_2}{n_1 + n_2} = \frac{228}{550} \approx 0.4145$, and $SE = \sqrt{\hat{p}_c(1-\hat{p}_c)\left(\frac{1}{n_1} + \frac{1}{n_2}\right)} \approx 0.0422$. The conditions are random selection or assignment, independence between groups, the 10% condition for each sample, and all four counts at least 10.

The hypotheses go wrong in three ways: two separate values assigned to $p_1$ and $p_2$ from the samples, hypotheses written about $\hat{p}_1$ and $\hat{p}_2$ which are already known and unequal, or a null set to the observed difference of 0.10, which is the evidence rather than the claim. The standard error goes wrong by keeping the groups separate, which is the interval's formula and contradicts the null the test assumes. And the design goes unchecked, so paired before-and-after measurements get run through machinery whose derivation requires independence.

p1 = all shoppers on the new system, p2 = all shoppers on the old H0: p1 = p2 Ha: p1 > p2 no numerical value appears: the null claims only EQUALITY, which is what lets the test pool direction from the question three that are not hypotheses H0: p1 = 0.46, p2 = 0.36 two values read off the data H0: p-hat1 = p-hat2 known, and plainly unequal H0: p1 - p2 = 0.10 that is the evidence, not the claim
The null claims equality without naming a value, which is precisely why both samples can be merged into one estimate of the shared proportion.
under H0 there is ONE proportion, estimated from all the data p-hat_c = (138 + 90) / (300 + 250) = 228 / 550 = 0.4145 SE = sqrt( 0.4145 x 0.5855 x (1/300 + 1/250) ) = 0.0422 the INTERVAL's version keeps the groups apart: 0.0418 different formulas because the two procedures assume different things
The pooled proportion is a weighted average of the two samples, not the average of the two sample proportions. With very unequal sample sizes the two would differ noticeably.

The work

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Lesson
Setting Up a Test for the Difference Between Two Population Proportions

Sets up the two-proportion z-test: both parameters defined in context, a null of equality with no value named, the pooled proportion that the null's assumption licenses, all four counts checked, and the design question that decides whether the procedure applies at all.

Skill check · 10 scenarios
Diagnostic
10-item topic check

Ten items on two-proportion setup: separate values assigned to each parameter, hypotheses about the sample proportions, nulls set to the observed difference, unpooled standard errors in tests, and paired designs. Take it cold to find your habit, or after the lesson to check it is gone.

Not started · 10 items · ~15 min
Targeted Practice
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