TABLE 10-8 a Few Years Ago, Pepsi Invited Consumers to Take the Take

question 53

Multiple Choice

TABLE 10-8
A few years ago, Pepsi invited consumers to take the "Pepsi Challenge." Consumers were asked to decide which of two sodas, Coke or Pepsi, they preferred in a blind taste test. Pepsi was interested in determining what factors played a role in people's taste preferences. One of the factors studied was the gender of the consumer. Below are the results of analyses comparing the taste preferences of men and women with the proportions depicting preference for Pepsi.
Males: n = 109, pM = 0.422018 Females: n = 52, pF = 0.25
pM - pF = 0.172018 Z = 2.11825
-Referring to Table 10-8, suppose that the two-tail p-value was really 0.0734. State the proper conclusion.

• A) At α = 0.05, there is sufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.
• B) At α = 0.10, there is sufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.
• C) At α = 0.05, there is sufficient evidence to indicate the proportion of males preferring Pepsi equals the proportion of females preferring Pepsi.
• D) At α = 0.08, there is insufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into their production or delivery.

Cost Driver

A factor that influences or contributes to the expense incurred by a business activity. It is the root cause of why a particular cost occurs.

Conventional CVP Analysis

A method used in managerial accounting to understand the relationship between costs, production volume, and profits. It stands for Cost-Volume-Profit Analysis.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.