Question

In the 1970's PepsiCo., makers of Pepsi, began airing commercials in which they claimed more cola drinkers preferred Pepsi over Coca-Cola in a blind taste test. Assume Pepsi's claim is that more than 50% of Coca-Cola drinkers prefer Pepsi. You work for an independent research firm and are asked to test Pepsi's claim.

* Identify the null and alternative hypotheses and identify the one with the claim.

*If 280 people from a sample of 500 prefer Pepsi, find the p-value. Will you reject or fail to reject the null hypothesis at the 5% significance level?

*Interpret your decision in the (correct) context of the problem. Is there enough evidence to support Pepsi's claim?

* Why do you think Pepsi used a blind taste test?

Thank you in advance!

Answer 1