Question 271410: 9.10 In a recent survey, 10 percent of the participants rated Pepsi as being “concerned with my health.”
PepsiCo’s response included a new “Smart Spot” symbol on its products that meet certain nutrition criteria, to help consumers who seek more healthful eating options. At α = .05, would a follow-up survey showing that 18 of 100 persons now rate Pepsi as being “concerned with my ealth” prove that the percentage has increased?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! In a recent survey, 10 percent of the participants rated Pepsi as being “concerned with my health.”
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PepsiCo’s response included a new “Smart Spot” symbol on its products that meet certain nutrition criteria, to help consumers who seek more healthful eating options.
At α = .05, would a follow-up survey showing that 18 of 100 persons now rate Pepsi as being “concerned with my earth” prove that the percentage has increased?
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Ho: p = 10%
Ha: p > 0.10
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sample proportion: 18/100 = 0.18
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z(0.18) = (0.18-0.10)/sqrt(0.10*0.90/100) = 2.67
p-value = P(z > 2.67) = 0.0038
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Conclusion: Since the p-value is less than 5%, reject Ho.
The test results support increasing the percentage.
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Cheers,
Stan H.
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