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    Hypothesis Testing for proportions

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    The manufacturer of a nationally known "lite beer" claims that the approval rating for it's product is at least 85%. A local soft drink manufacturer has retained a marketing agency to test the "lite beer". A sample of 500 individuals participated in the test nationally. Out of the sample of 500, 100 indictated that they did not like the taste. Test the hypothesis the approval rating is at least 85% at the 0.10 level of significance.

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    Solution Preview

    Null Hypothesis: H0: p=85% (approval rating is at least 85%)
    Alternative Hypothesis: H1: p < 85% (approval rating is less than 85%)

    p= 85.00% =Hypothesized proportion
    q=1-p= 15.00%
    n= 500 =sample size

    s p=standard error of proportion= square root of ...

    Solution Summary

    The hypothesis that the approval rating for "lite beer" is at least 85% at the 0.10 level of significance.

    $2.19

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