Fifteen people were given two types of cereal, Brand X and Brand Y. Two people preferred Brand X and thirteen people preferred Brand Y. We want to determine whether or not customers prefer one brand over the other. At α = .01, the null hypothesis should
A) be rejected.
B) not be rejected.
C) be revised.
D) not be tested.

Question

Quizplus · Accepted Answer

At α = .01 significance level, we reject the null hypothesis if the p-value is less than .01. In this case, since only 2 out of 15 people preferred Brand X, the probability of obtaining such an extreme result is very low. Therefore, we can reject the null hypothesis that the customers do not have a preference between Brand X and Brand Y, and conclude that the customers prefer Brand Y over Brand X.

Fifteen People Were Given Two Types of Cereal, Brand X