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We now turn out attention to conducting a significance test about a population proportion. Recall the conditions necessary to construct a confidence interval for a population proportion, because the conditions for conducting a significance test about a population proportion are the same. SRS Normality for distribution: ____________________ Independence
Our general form for our test statistic has always been Test statistic = --------------------------------------
Example: An experiment on the side effects of pain relievers randomly assigned arthritis patients to one of several over-the-counter pain medications. Of the 440 patients who took pain reliever A, 23 suffered some “adverse effect”. a) Does this experiment provide strong evidence that fewer than 10% of the people who take this medication have adverse effects?
b) Describe a Type I error and a Type II in this situation and give consequences of each.
Note I: The standard error for the confidence interval is computed using , while the denominator for the test statistic is computed using the value in the null hypothesis p0. Consequently, the correspondence between a two-tailed significance test and a confidence interval for a population proportion is no longer exact. However, they are still very close.
Note II: Confidence Intervals provide information that significant tests do not – namely, a range of plausible values for the true population proportion.