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Test of hypothesis for equality of two proportions

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(see attached)

A sample of 200 observations from the population indicated that X1 is 170. A sample of 150 observations from the second population revealed X2 to be 110. Use the .05 significance level to test the hypothesis.
A. state the decision rule
B. compute the pooled proportion
C. compute the value of the test statistic
D. what is you decision regarding the null hypothesis?

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The solution answers a test of hypothesis on equality of two proportions

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A. state the decision rule

Null Hypothesis: Ho: p1=p2
Alternative Hypothesis: H1: p1 not equal to p2
No of tails= 2 Since it is a two tailed test
significance level= alpha = 5%
or alpha = 0.05 (expressed in decimal number)

Since the sample sizes are large we will use normal distribution and use two tailed test for difference

z critical value for alpha= 0.05 and two tailed ...

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