Instruction 10-10
a Few Years Ago, Pepsi Invited Consumers $p _ { M }$

question 20

Multiple Choice

Instruction 10-10
A few years ago, Pepsi invited consumers to take the "Pepsi Challenge". Consumers were asked to decide which of the two soft drinks, 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, $p _ { M }$ = 0.422018 Females: n = 52, $p _ { F }$ = 0.25 $p _ { M }$ - $p _ { F }$ = 0.172018 Z = 2.11825
-Referring to Instruction 10-10,suppose that the two-tailed p-value was really 0.0734.State the proper conclusion.

• A) At \(\alpha\) = 0.05, there is sufficient evidence to indicate the proportion of males preferring Pepsi equals the proportion of females preferring Pepsi.
• B) At \(\alpha\) = 0.08, there is insufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.
• C) At \(\alpha\) = 0.05, there is sufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.
• D) At \(\alpha\) = 0.10, there is sufficient evidence to indicate the proportion of males preferring Pepsi differs from the proportion of females preferring Pepsi.

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Definitions:

Variable Cost of Goods Sold

Costs that vary directly with the level of production, including raw materials and direct labor expenses.

Manufacturing Margin

The difference between the production cost and the selling price of goods, highlighting the profitability of manufacturing activities.

Absorption Costing Income Statement

This income statement format incorporates all manufacturing costs, including both fixed and variable, into the cost of a product.

Net Profit

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue; also known as net income.