Woof Chow Dog Food Company believes that it has a market share of 25 percent. It surveys n = 100 dog owners and ask whether or not Woof Chow is their regular brand of dog food, and 23 people say yes. Based upon this information, what is the value of the test statistic?
A) -0.462
B) -0.475
C) 0.462
D) 0.475

Question

Quizplus · Accepted Answer

The test statistic is calculated using the formula for a proportion: (p̂ - p) / sqrt(p(1-p)/n), where p̂ = 23/100 = 0.23, p = 0.25, and n = 100. Plugging in these values gives (-0.02) / sqrt(0.25*0.75/100) = -0.462.

Woof Chow Dog Food Company Believes That It Has a Market