Hypothesis Testing The Coca-Cola Company reported that the mean per capita annua
ID: 3181729 • Letter: H
Question
Hypothesis Testing The Coca-Cola Company reported that the mean per capita annual sales of its beverages in the United States was 423 eight-ounce servings. Suppose you arc curious whether the consumption of Coca-Cola beverages is higher in Atlanta, Georgia, the location of Coca-Cola's corporate headquarters. A sample of 64 individuals from the Atlanta area showed a sample mean of 455 eight-ounce servings with a sample standard deviation of 100 eight-ounce servings. a) At 5% significance level, conduct a hypothesis test to test whether the mean annual consumption of Coca-Cola beverage product is higher in Atlanta using the critical value approach. b) Repeat the hypothesis test using the p-value approach.Explanation / Answer
Given that,
population mean(u)=423
sample mean, x =455
standard deviation, s =100
number (n)=64
null, Ho: <423
alternate, H1: >423
level of significance, = 0.05
from standard normal table,right tailed t /2 =1.669
since our test is right-tailed
reject Ho, if to > 1.669
we use test statistic (t) = x-u/(s.d/sqrt(n))
to =455-423/(100/sqrt(64))
to =2.56
| to | =2.56
critical value
the value of |t | with n-1 = 63 d.f is 1.669
we got |to| =2.56 & | t | =1.669
make decision
hence value of | to | > | t | and here we reject Ho
p-value :right tail - Ha : ( p > 2.56 ) = 0.00644
hence value of p0.05 > 0.00644,here we reject Ho
ANSWERS
---------------
null, Ho: =423
mean rate is higher in atlanta, alternate, H1: >423
test statistic: 2.56
critical value: 1.669
decision: reject Ho
p-value: 0.00644
we have enough evidence to support mean rate is higher in atlanta,
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