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:

Accounting Equation

The fundamental formula in accounting that represents the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).

Liabilities

Financial obligations or debts that a company owes to others, payable in money, goods, or services.

Owner's Equity

Represents the owner’s claims on the assets of a business, calculated as the business’s total assets minus its total liabilities.

Accounting Equation

The fundamental equation of double-entry bookkeeping, reflecting that assets equal liabilities plus owner's equity.