Question
In this scenario, the hypothesis test we would use is a 2-proportion z-test because we are comparing the proportion in percentage of unemployment for two
In this scenario, the hypothesis test we would use is a 2-proportion z-test because we are comparing the proportion in percentage of unemployment for two different samples of data. With this, a "two sample Z test of proportions is the test to determine whether the two populations differ significantly on specific characteristics" (Hessing, n.d.). To start the hypothesis test we need to address a null and alternative hypothesis. The null hypothesis states that there was no difference in the unemployment rates between the two months. The alternative hypothesis, then claims that there was a significant difference in the unemployment rates between the two months. In order to effectively conduct this test, we would first need to know the sample sizes as this can have a lot of influence on the test's power and the accuracy of our results. Larger sample sizes tend to provide more reliable estimates of the true population and increase the likelihood of detecting a true difference if one exists.
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