Question

3. [12 marks] Suppose a busy grocery store has several sampling booths set up for the same product. After a customer samples the product, they are asked if they are less likely, just as likely, or more likely to buy a competitor’s product. The results are provided below. For the purposes of this exam, you may assume that each customer is independent.

Less likely	Just as likely	More likely
50	45	55

You are the data analyst in charge of this experiment. The store would like to know whether there is a difference between the population proportions of customers who are less likely, just as likely, or more likely to buy a competitor’s product.

a) What type of hypothesis test should you conduct in this case? [1 mark]

b) Conduct your chosen hypothesis test using the critical value method. Show all 5 steps, and ensure you calculate the appropriate degrees of freedom. Show how you calculate each individual component of your test statistic. The critical value is: 5.99147.[11 marks]

Answer 1