Question 1161715: I need the steps to test whether there is a significant difference in the proportion of homeowners between first and second-generation Hispanic Americans. Set alpha at 0.05.
First-Generation Hispanic Americans (N = 899), 43% own a home
Second-Generation Hispanic Americans (N = 351), 50% own a home
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! Assuming random sample and normal distribution, the latter of which is reasonable given the sample size,
Ho:p1=p2
Ha: they aren't equal.
alpha=0.05 p{reject Ho|Ho true}
test stat is a z=(p1-p2)/sqrt ((p1(1-p1)/n1)+(p2(1-p2)/n2))
reject Ho for |z|>1.96
Calculator STAT TESTS 6 enter and fill in what is needed
to do this need to convert the 43% of 899 to a number, so multiply them. I would round to an integer, since it is people and that would be 387
For the 50%, use 176
z=-2.27 which means reject Ho and conclude the two proportions are different (or didn't come from the same population, another way to say it).
p value=0.02
One will get a slightly different answer by using 0.43 and 0.50 in the formula above, but the difference will be slight and the conclusion unchanged.
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