Vermont-Based Green Mountain Coffee Roasters Dominates the Market for Single-Serve

question 41

Multiple Choice

Vermont-based Green Mountain Coffee Roasters dominates the market for single-serve coffee in the United States, with its subsidiary Keurig accounting for approximately 70% of sales ("Rivals Try to Loosen Keurig's Grip on Single-Serve Coffee Market," Chicago Tribune, February 26) . But Keurig's patent on K-cups, the plastic pods used to brew the coffee, is expected to expire this year, allowing other companies to better compete. Suppose a potential competitor has been conducting blind taste tests on its blend and finds that 47% of consumers strongly prefer its French Roast to that of Green Mountain Coffee Roasters. After tweaking its recipe, the competitor conducts a test with 144 tasters, of which 72 prefer its blend. The competitor claims that its new blend is preferred by more than 47% of consumers to Green Mountain Coffee Roasters' French Roast. Which of the following should be used to develop the null and alternative hypotheses to test this claim?

• A) H₀: = 0.50, H_A: ≠ 0.50
• B) H₀: p ≥ 0.47, H_A: p < 0.47
• C) H₀: p ≤ 0.47, H_A: p > 0.47
• D) H₀: μ ≥ 72, H_A: μ < 72

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