Question

Problem 2: You are the market researcher for Chili’s. Your boss wants to find out if the restaurant enjoys the same market penetration in the households with children as in households without children. He asked you, the market researcher, to look into this problem. You decide to take a random sample of 350 households with children and find that 45% of them eat at Chili’s. Then, you take a random sample of 250 households without children and find out that 54% of them eat at Chili’s. Given this, does the restaurant have the same or different market penetrations among the two market segments? To answer this question, please show your detailed work by following the steps below.

1. What are the hypotheses (null and alternative) you test? Describe in words what you test. (2 points)
2. Is the market penetration the same among the two market segments? The confidence level is 95%. (3 points)
3. What is the conclusion, that is, what do you suggest your boss to do with the information gathered from this analysis? Be clear in your recommendation and explain why you reached it.(3 points)

Answer 1