Track 8 · Hypothesis Testing · Lesson 6 of 14

Tests for a proportion

Test a claim about a single population proportion with the one-sample z-test or the exact binomial test, and report the result with a confidence interval.

30 minIntermediate7 graded exercisesMembers

A parcel firm advertises that 90% of deliveries arrive on time. A client checks 400 of its own deliveries and finds 344 on time — 86%. Is that just bad luck in the sample, or evidence that the firm's on-time rate is below its claim? Questions about rates and percentages are among the most common in business, and they have their own tests.

When each observation is a yes/no outcome (on time or late, converted or not, defective or fine), the parameter is a population proportion pp and the evidence is the sample proportion p^=x/n\hat{p} = x/n, where xx is the number of “successes” among nn independent trials. Under H0:p=p0H_0: p = p_0, the count xx follows a Binomial(nn, p0p_0) distribution — which gives two ways to test.

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It has 7 graded exercises with feedback, hints and worked solutions. After it you will be able to:

  • Compute the one-sample z statistic for a proportion with the null standard error
  • Use the exact binomial test when the expected counts are small
  • Report a proportion test with the Wilson (or exact) confidence interval
  • Check an experiment's traffic split for a sample ratio mismatch