Part 2. MM4XL Tools > 2. Analytical Tools > Proportion Analyst > Technicalities

## Proportion Analyst

### Technicalities

Proportion Analyst applies the Z test for homogeneity of two proportions when investigating whether a significant difference exists. It tests equality running a two-tailed test that determines whether there is any difference in the proportion of successes in the two samples. A one-tailed test is needed when determining if successes are higher in one of the two groups.

The null ( ) and alternative ( ) hypotheses Proportion Analyst sets are: : or the difference  : or the difference The test statistic, Z, is approximated by a standard normal distribution: Where: = Proportion of successes in sample 1; = Proportion of successes in sample 2; Sample proportion from population I; = Size sample I; = Pooled estimate for population proportion.

The probability of accepting or rejecting Ho, called p Value in the output report, is approximated by a standard normal distribution with mean 0 and standard deviation 1 (see formula NORMSDIST in Excel). The equation for the standard normal density function is: The null hypothesis is rejected if the Z value lies outside the critical values from the standard normal distribution. This means, when the achieved is higher that the user stated probability the two proportions are recognized as significantly different and the alternative hypothesis( ) is accepted. Price: 238.00
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