Two sample proportion test is used to determine whether the proportions of two groups from different samples differ.
Proportion 1 = n1 / N1
Proportion 2 = n2 / N2
Example, Tim Cook aims to improve the quality of Airpods by reducing defective parts. Therefore, he monitors the efficiency of two assembly lines in the Airpod factory.
In line A there are 18 defects reported out of 400 samples. While the line B shows 25 defect out of 350 samples. Is the difference between the two assembly lines significant?
N1 = 400
N2 = 350
Proportion 1 = 18 / 400 = 0.045
Proportion 2 = 25 / 350 = 0.0714