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Hypothesis Test: Difference of Proportions

The general social survey is an annual survey given to about 1,500 U.S. adults selected at random. Each year, the survey contains several questions meant to probe the respondents' views of employment. A recent survey contained the question "How important to your life is having a fulfilling job?" Of the 264 college graduates surveyed, 103 chose the response "very important." Of the 123 people surveyed whose highest level of education was high school or less, 30 chose the response "very important."

Based on these data, can we conclude, at the 0.01 level of significance, that there is a difference between the proportion of U.S. college graduates who would answer "very important" and the proportion of all U.S. adults whose highest level of education was high school or less who would answer "very important"?

Perform a two tailed test.

Solution Preview

We want to compare the population proportions (symbolized with a "p" or a "pi"):
p1: U.S. college grads who would answer "very important".
p2: U.S. adults with high-school educations or less who would ...

Solution Summary

This solution provides the step by step method for the calculation of the Z test statistic for the difference of two population proportions. Formula for the calculation and Interpretations of the results are also included. To view the full solution, a Word document needs to be opened.