Question

In: Statistics and Probability

A brand of mints come in various flavors. The company says that it makes the mints...

  1. A brand of mints come in various flavors. The company says that it makes the mints in the following proportions.

Flavor

Cherry

Strawberry

Chocolate

Orange

Lime

Expected %

30%

20%

20%

15%

15%

A bag bought at random has the following number of mints in it.

Flavor

Cherry

Strawberry

Chocolate

Orange

Lime

Observed

67

50

54

29

25

Determine whether this distribution is consistent with company’s stated proportions.

  1. What is the null hypothesis?
  2. What is the alternative hypothesis?
  3. Enter the observed number of times a flavor comes up in your test bag and the expected number of times that the flavor should come up into the X-squared goodness of fit applet.
  4. What is the number of degrees of freedom?
  5. What is the p-value? Provide a screen shot of your answer.
  6. Using a 95% confidence interval, should you accept or reject the null hypothesis?
  7. Does the distribution of flavors in your random bag support or contest the company’s state proportions? (yes or no).

Solutions

Expert Solution

The null hypothesis is H0 : The brand of mints come in various flavours are consistent with company's states proportions.

The alternative hypothesis is H1:The brand of mints come in various flavours are not consistent with company's states proportions.

We compute the table of observed frequencies and expected frequencies

here, expected frequencies gives in the % form that is in probability form (Pi)

We calculate expected frequencies = Ei = N*Pi

N =total observations = 225

Pi = proportion of each flavour (we convert it % into fraction values)

Observation table

The test statistic is given by

Oi = observed frequencies

Ei = expected frequencies

Flavour

Oi

Pi

Ei = N*Pi

Oi^2/Ei

Cherry

67

0.30

67.5

66.50

Strawberry

50

0.20

45

55.56

Chocolate

54

0.20

45

64.8

Orange

29

0.15

33.75

24.92

Lime

25

0.15

33.75

18.52

= 230.3

test statistic is

............(1)

Degrees of freedom = n-k-1

n = total category of flavour = 5

k = number of independent observation = 0

Degrees of freedom = n-k-1 = 5-0-1 = 4

Degrees of freedom = 4

P-value

Oi Ei
67 67.5
50 45
54 45
29 33.75
25 33.75

We find p-value in excel by using command

=CHITEST(actual range,expected_range)

select observed frequecies Oi in place of actual range and

expected frequencies in expected_range then press Enter key

P-value = 0.2582

We find 95% confidence interval and find the critical value of Chi-square by using excel is

=CHIINV(probability,degrees of freedom)

here 95% = 0.95 condidence interval

Critical value = CHIINV(0.05,4) then press Enter key in Excel

Critical value = 9.49.................(2)

By comparing calculated value in equation (1) with Critical value in equation (2)

and take decision of accept or reject null hypothesis

here,

Calculated value = 5.3 < Critical value = 9.49

So we should accept our null hypothesis.

that is the brand of mints come in various flavours are consistent with company's states proportions.


Related Solutions

A brand of mints come in various flavors. The company says that it makes the mints...
A brand of mints come in various flavors. The company says that it makes the mints in the following proportions. Flavor Cherry Strawberry Chocolate Orange Lime Expected % 30% 20% 20% 15% 15% A bag bought at random has the following number of mints in it. Flavor Cherry Strawberry Chocolate Orange Lime Observed 67 50 54 29 25 Determine whether this distribution is consistent with company’s stated proportions. What is the null hypothesis? What is the alternative hypothesis? Enter the...
#1 A candy company makes chocolates in two flavors, milk and dark. Brenda is a quality...
#1 A candy company makes chocolates in two flavors, milk and dark. Brenda is a quality control manager for the company who wants to make sure that each jumbo bag contains about the same number of chocolates, regardless of flavor. She collects two random samples of 15 bags of chocolates from each flavor and counts the number of chocolates in each bag. Assume that both flavors have a standard deviation of 9.5 chocolates per bag and that the number of...
Doscher’s French Chew Company makes 4 yummy flavors of its flagship product (the French chew –...
Doscher’s French Chew Company makes 4 yummy flavors of its flagship product (the French chew – a taffy): Vanilla (V), Banana(B), Strawberry(S), and Chocolate(C). The company would like to maximize profit when it makes the varieties. It needs your help in considering the following constraint. When it considers making these flavors it wants to make sure that the strawberry flavor accounts for at least 30% of all the units produced. Express this constraint in equation form where all the variables...
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating...
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $ 32,800 $...
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating...
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $ 33,200 $...
You are the plant accountant for a company that makes a popular brand of basketball shoes....
You are the plant accountant for a company that makes a popular brand of basketball shoes. Currently, your company sells 1,000 pairs of shoes each month for $100 apiece. The variable costs are 40% of sales, and the fixed costs are $35,000/month. The company's advertising director is asking for an increase in her marketing budget of $1,500 per month. She plans to enhance her marketing campaign in a targeted area of the West Coast. She estimates that the additional advertising...
Mike and Ike’s are a popular oblong fruit-flavored chewy candies that come in several flavors, cherry,...
Mike and Ike’s are a popular oblong fruit-flavored chewy candies that come in several flavors, cherry, orange, lime, lemon, and strawberry. Recently, Mike and Ike have been receiving customer complaints that the candy packages have many more orange and lime-flavored candies, which are their least favorite. The company believes these claims are false and seeks to show customers that the average number of candies per package are equal amongst the different flavors. The data collected by the company is found...
Mike and Ike’s are a popular oblong fruit-flavored chewy candies that come in several flavors, cherry,...
Mike and Ike’s are a popular oblong fruit-flavored chewy candies that come in several flavors, cherry, orange, lime, lemon, and strawberry. Recently, Mike and Ike have been receiving customer complaints that the candy packages have many more orange and lime-flavored candies, which are their least favorite. The company believes these claims are false and seeks to show customers that the average number of candies per package are equal amongst the different flavors. The data collected by the company is found...
The label on the bottles of spring water of a certain brand says 250 milliliters. A...
The label on the bottles of spring water of a certain brand says 250 milliliters. A random sample of 20 bottles has an average of 248 milliliters. Suppose we know that the population, which is normally distributed, has a standard deviation of 2.5 milliliters. Does this seem to indicate that the population mean volume of a bottle is 250 milliliters?
Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a...
Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to “diversify the product portfolio.” Currently, the company shows an operating profit that is 20 percent of sales. With the single product, other costs were twice the cost of rent. The intern estimated that the incremental profit of the new cereal would only be 7.5 percent of the incremental revenue, but...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT