Are you an impulse shopper? A survey of 800 grocery shoppers indicated that 48 % of males and 40 % of females make an impulse purchase every time they shop. Assume that the survey consisted of 400 males and 400 females.
a. At the 0.1 level of significance, is there evidence of a difference in the proportion of males and females who make an impulse purchase every time they shop?
b. Find the p-value and interpret its meaning.
a)
p1cap = X1/N1 = 192/400 = 0.48
p1cap = X2/N2 = 160/400 = 0.4
pcap = (X1 + X2)/(N1 + N2) = (192+160)/(400+400) = 0.44
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p1 = p2
Alternate Hypothesis, Ha: p1 ≠ p2
Test statistic
z = (p1cap - p2cap)/sqrt(pcap * (1-pcap) * (1/N1 + 1/N2))
z = (0.48-0.4)/sqrt(0.44*(1-0.44)*(1/400 + 1/400))
z = 2.28
Rejection Region
This is two tailed test, for α = 0.1
Critical value of z are -1.64 and 1.64.
Hence reject H0 if z < -1.64 or z > 1.64
reject the null hypothesis.
b)
P-value Approach
P-value = 0.0226
As P-value < 0.1, reject the null hypothesis.
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