Assumptions:   a) Simple Random Sampling           b) n1(p̂1)(1 - p̂1) ≥ 10 and n2(p̂2)(1 - p̂2) ≥ 10           c) n1 ≤ 0.05N1 and n2 ≤ 0.05N2


Step 1: Set up null and alternative hypotheses.

H0: p1 = p2                   (Note: H0: p1 = p2 ⇔ H0: p1 - p2 = 0)

H1: p1 ≠ p2                   (Note: H1: p1 ≠ p2 ⇔ H1: p1 - p2 ≠ 0)



Step 2: Input α (level of significance of hypothesis test).

α =     (Note: α = level of significance of hypothesis test   = probability of making Type I error.)



Step 3: Calculate Test Statistic.

For Sample 1:
n1 = (sample size)
x1 = (This is the number of successes from sample 1)
p̂1 = x1/n1 =      (This is the sample proportion from sample 1)

For Sample 2:
n2 = (sample size)
x2 =      (This is the number of successes from sample 2)
p̂2 = x2/n2 = (This is the sample proportion from sample 1)

p̂ = (x1 + x2)/(n1 + n2)        




Blank        (Note: From Step 1, we have H0: p1 = p2 ⇔ H0: p1 - p2 = 0; therefore, p1 - p2 = 0)





Step 4: Determine P-value

Using the test statistic in Step 3 as a z-score, we will find the left-tailed area and right-tailed area corresponding to this z-score.






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