2 Proportion Z Test

Definition

The 2 proportion z test is a hypothesis test used to compare two proportions from independent samples. It determines whether there is enough evidence to conclude that the proportions are significantly different from each other.

Analogy

Imagine you have two groups of friends - one group likes pizza and another group likes burgers. You want to know if there is a significant difference in preference between these two groups. So you conduct surveys and use statistical tests like the 2 proportion z test to determine if there is enough evidence to say that one group prefers pizza significantly more than burgers (or vice versa).

Related terms

Null Hypothesis: A statement assumed to be true until proven otherwise by data analysis.

Alternative Hypothesis: A statement that contradicts or negates the null hypothesis.

Significance Level (Alpha): The predetermined threshold used for determining whether there is enough evidence against the null hypothesis.