Used to test whether the sample proportion p^ from a population differs significantly from a claimed or hypothesized population proportion p0.
Hypotheses Setup
Let p the true population proportion, p^=nx. Here x = number of successes. n = sample size.
Then:
H0:p=p0
Alternative hypothesis depends on the problem:
H1:p<p0(left-tailed)
H1:p>p0(right-tailed)
H1:p=p0(two-tailed)
Test Statistic
Normal Approximation
Used when n is large and both np0≥5 and n(1−p0)≥5, the sampling distribution of p̂ is approximately normal.
So, under H₀:
Z=np0(1−p0)p^−p0∼N(0,1)
- For a two-tailed test, reject H0 if ∣Z∣≥Z1−α/2
- For a right-tailed test, reject H0 if Z≥Z1−α
- For a left-tailed test, reject H0 if Z≤−Z1−α
The confidence interval for p is:
p^±Z1−α/2np^(1−p^)
If p0 lies outside the confidence interval, reject H0 at significance level α.
Binomial Test
X∼Binomial(n,p0)
For tailed tests, calculate p-value directly by summing over binomial probabilities. H0 is rejected if p-value≤α.