The Managing Director of a Breakfast Cereal Manufacturer Claims That

question 50

Essay

The managing director of a breakfast cereal manufacturer claims 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. $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Two spouses } \\\text { working }\end{array} & \begin{array} { l } \text { One spouse } \\\text { working }\end{array} \\\hline \text { Eat cereal } & 114 & 87 \\\hline \text { Do not eat cereal } & 186 & 213 \\\hline\end{array}$$ Use the p-value method to test whether 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, at the 1% level of significance.

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Definitions:

Contractual Provision

A specific clause or term within a contract that outlines duties, rights, or obligations of the parties involved.

Liquidated Damages

A pre-determined amount of money agreed upon in a contract that is payable as damages for breach of contract.

Reasonable

Pertains to actions or decisions that are sensible, fair, and logical based on the circumstances presented.

Punitive

Relating to or aimed at punishment, especially within the context of punitive damages in legal judgments, intended to punish wrongful conduct and deter similar actions in the future.