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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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