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Test of hypothesis for difference between proportions

To market a new white wine, a winemaker decides to use two different advertising agencies one operating in the East and one in the West. After the white wine has been on the market for 8 months, independent random samples of wine drinkers are taken from each of the two regions and questioned concerning their white wine preference. Is there evidence that the proportion of wine drinkers in the West who prefer the new white wine is larger than the corresponding proportion of wine drinkers in the East? Test at a significance level alpha (a) = .02. State the null and alternate hypothesis. Determine the rejection region.

EAST WEST
NUMBER OF WINE DRINKERS SAMPLED 516 438
NUMBER SAMPLED WHO PREFER NEW WHITE WINE 18 23

Solution Summary

Tests the hypothesis that the proportion of wine drinkers in the West who prefer the new white wine is larger than the corresponding proportion of wine drinkers in the East.

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