Solved

The Managing Director of a Breakfast Cereal Manufacturer Claims That

Question 69

Essay

The managing director of a breakfast cereal manufacturer claims that families in which both spouses work are much more likely to be consumers of his product than those with only one working spouse. To prove his point, he commissions a survey of 300 families in which both spouses work and 300 families with only one working spouse. Each family is asked whether the company's cereal is eaten for breakfast. The results are shown below.  Two spouses  working  One spouse  working  Eat cereal 11487 Do not eat cereal 186213\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Two spouses } \\\text { working }\end{array} & \begin{array} { l } \text { One spouse } \\\text { working }\end{array} \\\hline \text { Eat cereal } & 114 & 87 \\\hline \text { Do not eat cereal } & 186 & 213 \\\hline\end{array} Use the p-value method to test whether the proportion of families with two working spouses who eat the cereal is at least 5% larger than the proportion of families with one working spouse who eats the cereal, at the 1% level of significance.

Correct Answer:

verifed

Verified

H0: p1 - p2 = 0.05
HA: p1 - p2 > 0.05
Th...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents