Question

A new soft drink is being market tested. A sample of 400 individuals participated in the taste test and 80 indicated they like the taste.

a. At a 5% significance level, test to determine if at least 22% of the population will like the new soft drink.
b. Determine the p-value.

Answer 1

Ok so we need to do a test on proportions - specifically the proportion that like a new soft drink. So we need to test to see if at least 22% or .22 of the population will like this soft drink. So we write that as our alternative hypothesis. The null hypothesis is always the parameter equal to the number in the alternative hypothesis

P= .22

So, are you ok with the hypotheses - any questions on that? :)