Maureen McIlvoy, owner and CEO of a mail order business for wind surfing equipment and supplies wants test whether her goal of shipping 100% orders within 24 hours is achieved or not.

After reviewing the order filling operations at her warehouses she determines that neither the East coast nor the West coast warehouse has achieved the goal. But the East Coast warehouse has consistently out-performed the West Coast warehouse.

To check whether this determination is correct or not Maureen's staff randomly selected 200 orders from the West Coast warehouse (population 1) and 400 orders from the East Coast warehouse (population 2).

Of the 200 orders from the West Coast warehouse, 190 were shipped within 24 hours. And of the 400 orders from the East Coast warehouse, 372 were shipped within 24 hours.

The hypothesis can be defined as follows:

H₀: The proportion of orders that were shipped within 24 hours is not more for East Coast warehouse than for West Coast warehouse, i.e. p₁ ≥ p₂.

Hₐ: The proportion of orders that were shipped within 24 hours is more for East Coast warehouse than for West Coast warehouse, i.e. p₁ < p₂.

Thus, Maureen's null hypothesis is, H₀: p₁ ≥ p₂.

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3 years ago