Question

A potato chip company would like to test how happy customers are with their new recipe....

A potato chip company would like to test how happy customers are with their new recipe. To test this, they take two samples of random people. Sample 1 will taste the old recipe and Sample 2 will taste the new recipe. Sample 1 consisted of 45 people and 78% of them stated they liked the flavor. Sample 2 consisted of 50 people and 82% of them stated they liked the flavor. Test the claim that the proportion of customers that enjoy the new recipe is higher than the old recipe. (Use a 0.05 level of significance.)

Homework Answers

Answer #1

p1cap = 0.78
p1cap = 0.82
pcap = (X1 + X2)/(N1 + N2) = (0.78 * 45 + 0.82*50)/(45+50) = 0.8011

Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p1 = p2
Alternate Hypothesis, Ha: p1 < p2

Rejection Region
This is left tailed test, for α = 0.05
Critical value of z is -1.64.
Hence reject H0 if z < -1.64


Test statistic
z = (p1cap - p2cap)/sqrt(pcap * (1-pcap) * (1/N1 + 1/N2))
z = (0.78-0.82)/sqrt(0.8011*(1-0.8011)*(1/45 + 1/50))
z = -0.49

P-value Approach
P-value = 0.3121
As P-value >= 0.05, fail to reject null hypothesis.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A potato chip company claims that their chips have 130 calories per serving. We think this...
A potato chip company claims that their chips have 130 calories per serving. We think this claim is too low, so we buy 40 bags of chips and test the calories per stated serving size. Our sample yields a mean of 132 calories per serving, with a standard deviation of 6 calories. Use alpha = 0.05. My question is.....Is the manufacturer's claim too low, and why?
1. You would like to test whether more than 50% of U.S. college students are happy...
1. You would like to test whether more than 50% of U.S. college students are happy with the college they chose. A random sample of 275 U.S. college students contain 142 who are happy with the college they chose.    What would the p-value be to two decimal places. 2. A sociologist believes that people spend over 50 hours per week on the Internet. A random sample of 300 people gives us an average of 51.2 hours on the Internet per...
A consumer products firm has recently introduced a new brand. The firm would like to estimate...
A consumer products firm has recently introduced a new brand. The firm would like to estimate the proportion of people in its target market segment who are aware of the new brand. As part of a larger market research study, it was found that in a sample of 125 randomly selected individuals from the target market segment, 84 individuals were aware of the firm’s new brand. The manager in charge of the new brand has stated that the brand awareness...
A business analyst wants to know if a new website design compared to an old website...
A business analyst wants to know if a new website design compared to an old website design is showing increased page views per visit. Two different samples of customers are randomly sent to one of two different websites, offering the same products, but with different designs. Is there a difference in average page views between the new and old website design? Use data from "website" sheet in excel. Run the appropriate statistical test using α=0.01 . Which of the following...
Happy Harvest Bread Company needs to determine whether a new advertising campaign has increased its mean...
Happy Harvest Bread Company needs to determine whether a new advertising campaign has increased its mean daily income. The daily income for 50 randomly selected business days prior to campaign was recorded. After the advertising campaign, the income for another 30 randomly selected days was recorded.     Let probability of making a type I error be 1%. Do these data provide sufficient evidence for the management to conclude that the mean income has changed by the advertising campaign? A summary of the...
New Wave Music New Wave Music is an international company that develops music software that is...
New Wave Music New Wave Music is an international company that develops music software that is used to compose music, play recordings in clubs, and produce albums. Founder and CEO Moritz Halbach is the company’s biggest fan. He said “I started this company from nothing, just me, my ideas, and my computer. I love music---love playing music, love writing programs for making music, love listening to music---and the money is nice, too.” Moritz says that he never wanted to work...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT