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

question 114

Short Answer

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,construct a 99% confidence interval estimate of the difference between the proportion of males and females who prefer Pepsi.

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Definitions:

Product Diversity

The variety of different items within a particular category available to consumers in the market.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, allowing for slight differentiation among them.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and economic agents have fully adjusted to any economic changes.

Perfect Competition

A market structure characterized by a large number of buyers and sellers, freely entering or exiting the market, selling identical products.