Answer :
Using the z-distribution, it is found that the p-value is of 0.0192.
At the null hypothesis, it is tested if commercial trucks owners do not violate laws requiring front license plates at a higher rate than owners of passenger cars, that is, the subtraction is of at most 0, hence:
[tex]H_0: p_2 - p_1 \leq 0[/tex]
At the alternative hypothesis, it is tested if commercial truck owners violate the laws more, that is, the subtraction is positive, hence:
[tex]H_1: p_2 - p_1 > 0[/tex]
For each sample, the size, the proportion and the standard error are given by:
[tex]n_1 = 2165, p_1 = \frac{235}{2165} = 0.1085, s_1 = \sqrt{\frac{0.1085(0.8915)}{2165}} = 0.0067[/tex]
[tex]n_2 = 330, p_1 = \frac{50}{330} = 0.1515, s_1 = \sqrt{\frac{0.1515(0.8485)}{330}} = 0.0197[/tex]
For the distribution of differences, the mean and the standard error are given by:
[tex]\overline{p} = p_2 - p_1 = 0.1515 - 0.1085 = 0.043[/tex]
[tex]s = \sqrt{s_1^2 + s_2^2} = \sqrt{0.0067^2 + 0.0197^2} = 0.0208[/tex]
The test statistic is given by:
[tex]z = \frac{\overline{p} - p}{s}[/tex]
In which [tex]p = 0[/tex] is the value tested at the null hypothesis.
Hence:
[tex]z = \frac{\overline{p} - p}{s}[/tex]
[tex]z = \frac{0.043 - 0}{0.0208}[/tex]
[tex]z = 2.07[/tex]
The p-value is found using a z-distribution calculator, for a right-tailed test, as we are testing if the proportion is more than a value, with z = 2.07.
- Using the calculator, the p-value is of 0.0192.
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