The production manager of a company that produces an over-the-counter cold remedy wants to boost sales...

50.1K

Verified Solution

Question

Basic Math

The production manager of a company that produces anover-the-counter cold remedy wants to boost sales of the product.The product is considered effective by the people who have triedit, but many people decide not to buy it again because it tasteslike day-old soapsuds. The manufacturer is trying to decide whetherto add a lemon flavor to the product. Because the flavoring willincrease production costs, the manager wants to be certain thatpeople respond favorably to the flavoring before using it. Twentypeople with colds are randomly sampled. On two differenceoccasions, each person uses the product and indicates which version(taste) is preferred. (They must pick one.)
State the competing hypotheses and the rejection region for ? =.01.
What conclusion should be made if 16 people prefer thelemon-flavored product? What if 2 people prefer the lemonflavor?
Why would using ? = .01 make sense in this case? If the resultsindicate that the null hypothesis should be rejected in favor ofthe alternative hypothesis, what additional problem(s) ofinterpretation might the production manager have to face?

Answer & Explanation Solved by verified expert

3.8 Ratings (435 Votes)

The manager is testing whether by adding the lemon flavour hasthe probability of buying the remedy again increase or not This isa test for population binomial proportionWe will use a 1 tailed ztest since the test is checking onlyin one direction right tailedstate the competing hypotheses and the rejection regionfor 01Null Hypothesis Peoplespreference hasnt changed after adding the lemon flavourVSCompeting See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member