Question

We have manufactured a product and are testing whether it is better than a competitor's product. We find that 13 of 20 people prefer our product to the competitor's product. Do we have enough evidence to declare that we have a superior product, or is there still doubt?

Answer #1

Let 'P' the true proportion of people who prefer our product.

The null and alternate hypothesis are:

H0:

Ha:

The test statistic value is given by:

Since this is a right tailed test, so the p-value is given by:

Let the level of significance be 0.05.

Since p-value is greater than 0.05, so we do not have sufficient evidence to reject the null hypothesis H0.

So, we cannot conclude that we have a superior product.

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