The Texacola soda company is trying to determine whether people prefer their pro

Question

The Texacola soda company is trying to determine whether people prefer their product over their chief competitor, Oklepsi. They decide to ask 100 randomly selected people at a local mall to taste each product blindfolded and rate each product on a 1 (awful) to 10 (awesome) scale. They then compare the mean score for Texacola (7.4) to Oklepsi (6.3). A hypothesis test of the difference yields a p-value of p = 0.003.
a. Identify the population and the sample in this situation.
b. Identify the null and alternative hypotheses.
c. What do you conclude from the p-value of p = 0.003?
d. If they asked 1000 people to rate the sodas (instead of 100) and got the same sample means and standard deviations, would the p-value be higher or lower? Why?

Explanation / Answer

a. Population : All people in the local mall.

Sample : 100 selected people to taste product.

b. Null and alternative hypothesis is

H0: Mean score for Texacola is equal to mean score for Oklepsi.

Ha : Mean score for Texacola is not equal to mean score for Oklepsi.

c. P - value = 0.003

P value < 0.05 we reject null hypothesis.

Conclusion : Mean score for Texacola is not equal to mean score for Oklepsi.

d. In they take 1000 people to rate the sodas instead of 100 the p-value increase, because p-value depends on

test statistic, if sample size increase then automatically test statistic will be decrease and if test statistic decrease then p value increase.

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