In which of the following scenarios could a two-proportion z-test be used for th

Question

In which of the following scenarios could a two-proportion z-test be used for the hypothesis test mentioned? (In the scenario or scenarios where the two-proportion z-test is appropriate, you may assume that the conditions for use of the test are met.) II. A random sample of adults is selected from Neighborhood a and an independent random sample of adults is selected from Neighborhood B. Each adult selected is asked this question: "If you're shopping in a supermarket and the total bill is between $10 and $20, do you prefer to pay using cash, a debit card, or a credit card?" A hypothesis test is used to compare the proportions of adults falling into the three categories for the two neighborhoods. III. The cashiers at a supermarket are given instructions as to how to randomly assign each customer (without the customer knowing) to either Group A or Group B. Customers assigned to Group A will be asked "Would you like to use cash or a card for your payments? Customers assigned to Group B will be asked "Would you like to use a card or cash for your payment?" A hypothesis test is used to compare the proportions of customers in the two groups who choose to use cash. (A) I only (B) II only (C) I and II (D) I and III (E) II and III

Explanation / Answer

(I) A two-proportion z test can be used here since we are comparing two proportions

(II) A two-proportion z- test can't be used here since we have more than two groups

(III) A two-proportion z test can be used here since we are comparing two proportions.

Option D is the answer.

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