Question

An apparel company running a market research in Vancouver and Toronto, about popularity of their sneakers among the teenagers. By sampling, it turned out that from 400 Vancouver teenage customers, 72 of them bought the sneakers, while from 500 Toronto teenage customers, 70 customers bought the product. With 6% significance level, can you conclude that the sneakers are more popular among Vancouver teenagers? Why?

Answer 1

The hypothesis being tested is:

H₀: p₁ = p₂

H_a: p₁ > p₂

p1	p2	pc
0.18	0.14	0.1578	p (as decimal)
72/400	70/500	142/900	p (as fraction)
72.	70.	142.	X
400	500	900	n
	0.04	difference
	0.	hypothesized difference
	0.0245	std. error
	1.64	z
	.0509	p-value (one-tailed, upper)

The p-value is 0.0509.

Since the p-value (0.0509) is less than the significance level (0.06), we can reject the null hypothesis.

Therefore, we can conclude that the sneakers are more popular among Vancouver teenagers.