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I understand that we can use two-population z-test to compare whether two proportions are different, i.e.,

Ho: p1=p2 (https://www.statisticshowto.datasciencecentral.com/z-test/)

Let says now I have more than 2 proportions, and I want to test whether the proportion are the same or not. I have looked it up and found that we can use contingency approach to do the hypothesis testing:

Ho:p1=p2=...=pn (https://www.itl.nist.gov/div898/handbook/prc/section4/prc46.htm)

Is this test (contingency approach) correct? Or there are better hypothesis tests to test if all the proportions are the same?

Thank you!

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1 Answer 1

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Data. In R statistical software you can use a chi-squared test of homogeneity of populations to test your first hypothesis. I will use the data in your first NIST link as an example:

Noncon     =c( 36, 46, 42, 63, 38)
Conform    =c(264,254,258,237,262)
DTA = rbind(Noncon,Conform)
chisq.test(DTA)

Initial test of homogeneity. Here is a chi-squared test of homogeneity among the six populations from R statistical software:

        Pearson's Chi-squared test

data:  DTA
X-squared = 12.131, df = 4, p-value = 0.01641

The P-value 0.016 < 0.05 shows that there are significant differences among the five populations at the 5% level of significance. (Results are consistent with those in the NIST link.)

Looking at residuals. As a first step toward identifying what the difference(s) may be, you can can compare observed counts $X_i$ and expected counts $E_i$ by considering the Pearson residuals which are $\sqrt{(X_i - E_i)^2/E_i},$ but retaining the sign of the difference $X_i - E_i.$

NC.test = chisq.test(DTA)
NC.test$obs
        [,1] [,2] [,3] [,4] [,5]
Noncon    36   46   42   63   38
Conform  264  254  258  237  262
NC.test$exp
        [,1] [,2] [,3] [,4] [,5]
Noncon    45   45   45   45   45
Conform  255  255  255  255  255
NC.test$resi
              [,1]        [,2]       [,3]      [,4]      [,5]
Noncon  -1.3416408  0.14907120 -0.4472136  2.683282 -1.043498
Conform  0.5636019 -0.06262243  0.1878673 -1.127204  0.438357

Residuals with absolute values greater than about $2$ may point the way to interesting differences among populations. Here, we look at Population 4, where we would have 'expected' $45$ nonconforming specimens (if the null hypothesis were true), but observed $63.$

Looking at the proportions of nonconforming specimens, we have:

Noncon/(Noncon+Conform)
[1] 0.1200000 0.1533333 0.1400000 0.2100000 0.1266667

So Population 4 seems to have a 21% nonconforming specimens, whereas the other four populations all have below 16% nonconforming.

Ad hoc tests comparing pairs of populations. As a first formal test, it makes sense to compare Population 4 with the Population 2 which has the second greatest proportion of nonconforming specimens: In R, prop.test makes this comparison, and finds no significant difference. (I prefer not to make the 'continuity correction', hence the parameter cor=F.)

prop.test(c(46,63), c(300,300), cor=F)

    2-sample test for equality of proportions 
    without continuity correction

data:  c(46, 63) out of c(300, 300)
X-squared = 3.24, df = 1, p-value = 0.07186
alternative hypothesis: two.sided
95 percent confidence interval:
 -0.118202692  0.004869359
    prop 1    prop 2 
 0.1533333 0.2100000 

The next lower percentage of nonconforming specimens is in Population 3, which is significant, if we test at the 5% level. However, making multiple comparisons at the 5% level may lead to 'false discovery'.

prop.test(c(42,63), c(300,300), cor=F)$p.val
[1] 0.02405158

Next in line is Population 6, which differs from Population 5 at the 1% level. Using the Bonferroni method of avoiding false discovery with as many as five such comparisons, we can feel confident rejecting at the 1% level.

prop.test(c(38,63), c(300,300), cor=F)$p.val
[1] 0.006376778

In summary, we might say that Population 6 has differs from Populations 1 and 5, possibly from Population 4, and not from Population 2.

It does not seem fruitful to make comparisons among Populations 1, 2, 3, 4, and 6. Mainly, I say this because of Pearson residuals of small absolute value in the first test, but also because these differences may not be of practical importance even if borderline significant. (however, opinions differ about criteria for such ad hoc comparisons.)

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  • $\begingroup$ Thank you for the detailed answer! $\endgroup$ Commented Jul 18, 2019 at 0:40

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