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To compare the effect of weather on sales of soft drinks, a distributor surveyed people in two regions of the country and asked if they purchased soft drinks in the last month. The following are the results. The distributor would like to know if there is a difference in sales between the two regions. Test the hypothesis with a 0.01 significance level. What is our decision?
Bayesian Statistics
A statistical method that applies probability to statistical problems, focusing on the posterior distribution of parameters by incorporating prior knowledge.
Probability Distributions
Mathematical functions that provide the probabilities of occurrence of different possible outcomes for an experiment.
Expected Value
A calculated average of all possible values in a random variable, weighted by each value's probability of occurrence.
Perfect Information
A situation in which all participants have access to all relevant information without any restrictions.
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