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# Hypothesis testing for proportions

Let p1 represent the population proportion of U.S. Senate and Congress (House of Representatives) democrats who are in favor of a new modest tax on "junk food". Let p2 represent the population proportion of U.S. Senate and Congress (House of Representative) republicans who are in favor of a new modest tax on "junk food". Out of the 265 democratic senators and congressman 106 of them are in favor of a "junk food" tax. Out of the 285 republican senators and congressman only 57 of them are in favor a "junk food" tax.

At alpha (a) = .01, can we conclude that the proportion of democrats who favor "junk food" tax is more than 5% higher than proportion of republicans who favor the new tax?

#### Solution Preview

Let p1 represent the population proportion of U.S. Senate and Congress (House of Representatives) democrats who are in favor of a new modest tax on "junk food". Let p2 represent the population proportion of U.S. Senate and Congress (House of Representative) republicans who are in favor of a new modest tax on "junk food". Out of the 265 democratic senators and congressman 106 of them are in favor of a "junk food" tax. Out of the 285 republican senators and congressman only 57 of them are in favor a "junk food" tax.
At alpha (a) = .01, can we conclude that the proportion of democrats who favor "junk food" tax is more than 5% higher than proportion of republicans who favor the new tax?

Null Hypothesis: H0: p1-p2 <= 5% ...

#### Solution Summary

Tests the hypothesis that the proportion of democrats who favor "junk food" tax is more than 5% higher than proportion of republicans who favor the new tax.

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