Based on past data, the producers of Ice Mountain bottled water knew that the pr

Question

Based on past data, the producers of Ice Mountain bottled water knew that the proportion of people who preferred Ice Mountain to tap water was 0.609. To see how consumer perception of their product has changed, they decide to conduct a survey. Of the 126 respondents, 99 indicated that they preferred Ice Mountain to the tap water in their homes. The 99% confidence interval for this proportion is ( 0.6916 , 0.8799 ). What is the best conclusion of those listed below?

a) We can claim that the proportion of consumers who prefer Ice Mountain to their tap water is larger than 0.609.

b) We can conclude that the proportion of consumers who prefer Ice Mountain to their tap water is smaller than 0.609.

c) We can not claim that the proportion of consumers who prefer Ice Mountain to their tap water differs from 0.609.

d) The proportion of consumers who prefer Ice Mountain is 0.609 with 99% confidence.

e) The confidence interval does not provide enough information to form a conclusion.

Explanation / Answer

As per the data provided, it is one tailed test.

a) We can claim that the proportion of consumers who prefer Ice Mountain to their tap water is larger than 0.609

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