Tests of Proportions (3 of 4)

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  1. The probability computed in Step 4 is compared to the significance level stated in Step 2. Since the probability value (0.0214) is less than the significance level of 0.05, the effect is statistically significant.

  2. Since the effect is significant, the null hypothesis is rejected. It is concluded that the proportion of people choosing the original formulation is greater than 0.50.

  3. This result might be described in a report as follows:
    The proportion of subjects choosing the original formulation (0.62) was significantly greater than 0.50, z = 2.3, p = 0.021. Apparently at least some people are able to distinguish between the original formulation and the new formulation.

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