The Managing Director of a Breakfast Cereal Manufacturer Believes That

question 52

Essay

The managing director of a breakfast cereal manufacturer believes that families in which both spouses work are much more likely to be consumers of his product than those with only one working spouse. To prove his point, he commissions a survey of 300 families in which both spouses work and 300 families with only one working spouse. Each family is asked whether the company's cereal is eaten for breakfast. The results are shown below. $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Two spouses } \\\text { working }\end{array} & \text { One spouse working } \\\hline \text { Eat cereal } & 114 & 87 \\\hline \text { Don't eat cereal } & 186 & 213 \\\hline\end{array}$$ Do these data provide enough evidence at the 1% significance level to infer that the proportion of families with two working spouses who eat the cereal is at least 5% larger than the proportion of families with one working spouse who eats the cereal?

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Definitions:

Diffusion of Responsibility

A sociopsychological phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of others.

Collaboratively

Working together with one or more people in order to achieve a common goal or produce a shared outcome.

International Fan Club

An organization that unites fans of a specific subject or entity from different parts of the world.

Neighbourhood

A geographic area within a larger community where residents live in proximity to one another, often sharing common social and physical characteristics.