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    Proportion hypothesis testing

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    Two popular drugs used for the treatment of depression are Resithan and Exemor. A random sample of 588 depressed individuals is selected and treated with Resithan, and 201 find relief from their depression. A random sample of 417 depressed individuals is independently selected from the first sample and treated with Exemor, and 147 find relief from their depression. Can we conclude, at the 0.1 level of significance, that the proportion of all depressed individuals taking Resithan who find relief from depression is greater than the proportion of all depressed individuals taking Exemor who find relief from depression?
    Perform a one-tailed test. Then fill in the table below.

    Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. (If necessary, consult a list of formulas.)

    State the null hypothesis:
    State the alternative hypothesis:
    The type of test statistic (round to three decimal places):
    The critical value at the .01 significance level (round to three decimal places):

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    Solution Summary

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.