I have 2 sets of data.  The first data set consists of the total amount of money that was received in 2023 (between January 2023 and September 2023) and out of this, how much was allocated to the right account. The second set of data is the total amount that was received between January 2024 and September 2024 and out of this, how much was allocated. 

 

While comparing 2023 and 2024 allocations, the proportion of money allocated in 2024 is higher than 2023.

The formula used for calculating proportion is, Proportion = Amount Allocated / Total Amount Received

 

Is it right to use 2 Proportion Z test to validate that the difference in proportion between 2023 and 2024 is statistically significant?

Hello Jaya

 

Any reason why data from Jan to Sept was considered? Why not the financial year or calendar year?

Thanks a lot Mayank for the response. 

 

As we are currently in October 2024, we have complete data only till September 2024.  Hence, in order to carry out a same period comparison between 2023 and 2024, we went for Jan to September in 2023 as well.

 

Ok. 

 

Since you are working with the complete data set, there is no need to do hypothesis testing. We use hypothesis testing when we work with samples.