Question
In: Statistics and Probability
A marketing analyst for a company which distributes decaffeinated coffee claims that the proportion of coffee...
A marketing analyst for a company which distributes decaffeinated coffee claims that the proportion of coffee drinkers who drink just decaffeinated coffee is greater than 0.2. A random sample of 1000 coffee drinkers contained 190 that drink just decaffeinated coffee. Does this sample provide sufficient evidence to refute the company’s claim? Use the p-value approach and level of significance 0.10.
Solutions
Expert Solution
Ho: p = 0.2
Ha: p > 0.2 [Right Tailed test]
Sample proportion = 190/1000 = 0.190
Test statistic
z = -0.79
p - Value = P(z > -0.79) = 0.7854
Since p - value is greater than 0.10, we do not reject Ho. Hence,
We do not have sufficient evidence to conclude that the proportion of coffee drinkers who drink just decaffeinated coffee is greater than 0.2.
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