Of a random sample of 381 high-quality investment equity options, 191 had less than 30% debt. Of an independent sample of 166 high-risk investment equity options, 145 had less than 30% debt. Test, against a two sided alternative, the null hypothesis that the two population proportions are equal.

Respuesta :

Answer:

As we have calculated Z = -8.2345 THEREFORE critical value is -1.96 hence there is significant difference ,  neglect null hypothesis.

and two population are not equal

Step-by-step explanation:

Given data:

Assuming null hypothesis be Hypothesis O (P1 = P2)

Assuming alternate hypothesis be Hypothesis A (P1 is not equal to P2)

[tex]n_1 = 381[/tex]

[tex]p_1 =\frac{191}{381} = 0.5013[/tex]

[tex]n_2 =166[/tex]

[tex]p_2 = \frac{145}{166} = 0.8735[/tex]

[tex]P = \frac{n_1 p_1 + n_2 p_2 }{n_1 + n_2}[/tex]

[tex]P = \frac{191 + 145}{381+166} = 0.6143[/tex]

Q = 1 - P = 0.3857

[tex]SE =\sqrt{PQ (\frac{1}{n_1} + \frac{1}{n_2})}[/tex]

   [tex] = \sqrt{0.6143 \times 0.3857 \times (\frac{1}{381} + \frac{1}{166})}[/tex]

SE = 0.0452

test statics

[tex]Z = \frac{(p_1 - p_2)}{SE}[/tex]

[tex]Z = \frac{0.5013 - 0.8735}{0.0452} = -8.2345[/tex]

[tex]\alpha = 0.05[/tex]    [taken 5% significance level]

from standard z table , critical value of [tex]Z = \pm 1.96[/tex]

As we have calculated Z = -8.2345 THERFORE critical value is -1.96 hence there is significant difference ,  neglect null hypothesis.

and two population are not equal