In a recent survey, 10 percent of the participants rated Pepsi as being \"concer

Question

In a recent survey, 10 percent of the participants rated Pepsi as being "concerned with my health." PepsiCo's response included a new "Smart Spot" symbol on its products that meet certain nutrition criteria, to help consumers who seek more healthful eating options.

Suppose a follow-up survey showing that 16 of 100 persons now rate Pepsi as being "concerned with my health", calculate the z statistic. (Round your answer to 3 decimal places.)

In a recent survey, 10 percent of the participants rated Pepsi as being "concerned with my health." PepsiCo's response included a new "Smart Spot" symbol on its products that meet certain nutrition criteria, to help consumers who seek more healthful eating options.

Suppose a follow-up survey showing that 16 of 100 persons now rate Pepsi as being "concerned with my health", calculate the z statistic. (Round your answer to 3 decimal places.)

Explanation / Answer

given

Ho: p = 10%
Ha: p > 0.10
-------------------
sample proportion: 16/100 = 0.16

z(0.16) = (0.16-0.10)/sqrt(0.10*0.90/100) = 2
p-value = P(z > 2) = 1-0.9772=0.0228 = rounding of 0.023
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Conclusion: Since the p-value is less than 5%, reject Ho.
The test results support increasing the percentage.

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