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

A research manager at Coca-Cola claims that the true proportion,
p, of cola drinkers that prefer CocaCola over Pepsi is greater than
0.50. In a consumer taste test, 100 randomly selected people were
given blind samples of Coca-Cola and Pepsi. 58 of these subjects
preferred Coca-Cola. Is there sufficient evidence at the 5% level
of significance to validate Coca-Cola’s claim? Conduct an
appropriate hypothesis test using (i) the p-value method and (ii)
the rejection point method.

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