n1 = n2 = 100
p1 = 50/100 = 0.5
p2 = 60/100 = 0.6
Ho: P1 = P2
Ha: P1 < P2
p = (p1 * n1 + p2 * n2) / (n1 + n2) = ((0.5*100)+(0.6*100))/(100+100) = 0.55
SE = sqrt{ p * ( 1 - p ) * [ (1/n1) + (1/n2) ] }
= sqrt((0.55*0.45)*(1/100+1/100))
= 0.07
Test statistic: z = (p1 - p2) / SE = (0.5-0.6)/0.07 = -1.429
p-value (Using Excel function NORM.S.DIST(z, cumulative)) = NORM.S.DIST(-1.429,TRUE) = -0.077
Since p-value is less than 0.05, we reject the ull hypothesis and conclude that P1 < P2.
Proportion of cats that have licenses is less than the proportion of dogs that have licenses.
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