- A study by Consumer Reports showed that 70% of supermarket
shoppers believe supermarket brands to be as good as national name
brands. To understand whether this is applies to its own product;
the manufacturer of a national name-brand cheese asked a sample of
shoppers whether they believed that store brand cheese was as good
as the name-brand cheese.
Consider the following hypothesis
test:
Ho: π = 0.70
H1: π ≠ 0.70
-
- If a sample of 200 shoppers showed 125 stating that the
supermarket brand was as good as the national brand, what would the
computed value for the statistic be?
- What is the p-value?
-
- At a 0.05 level of significance, what would your decision be
(reject Ho or fail to reject Ho)?
- Would you consider the name-brand cheese to be any different in
preference to the supermarket brand?