Test of Two Proportions

Jay Arthur
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Use our Two Proportion test template to compute a confidence interval and perform a hypothesis test of the difference between two proportions.

For example, if you are sending a direct mail piece to a group of prospects you may want to know if the proportion of customers who respond could be increased by offering free shipping. You would offer free shipping on half of your mailings and see if you have more purchases from the group that was offered free shipping from the group that was not.

Here is how to perform a Test of Two Proportions using the QI Macros Proportion template:

1. If data isn't summarized, use PivotTables to summarize the trials and successes
2. Click on the QI Macros pull down menu and select Anova and Analysis Tools, then Proportion tests. A template will open. Click on the tab labeled "Two Proportions."



3. Enter Test Difference in E2. The default is 0.
4. Enter number of trials in B3 and B7
5. Enter number of successes in C3 and C7
6. Enter confidence Level in E1
7. Null hypothesis is H0: P1=P2, H1: P1<>P2
   If cell I3:I5 is green, you cannot reject the null hypothesis
   If cell I3:I5 is red, reject the null hypothesis.

Other Statistical tests in the QI Macros

• Anova
• Data normality test
• t test in Excel
• Test of One-Proportion Template
  

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