MARS Claims That Skittles Candies Should Be Comprised of 30

question 42

Essay

MARS claims that Skittles candies should be comprised of 30% purple, 10% orange, and 20% should be red, yellow, and green. Business students count a large bag of Skittles and find 265 red, 279 purple, 303 yellow, 271 green, and 212 orange candies.
A) Set up the competing hypotheses to test if at least one proportion is different than the value claimed by MARS.
B) Calculate the value of the test statistic and determine the degrees of freedom.
C) Compute the p-value. Does the evidence suggest that at least one proportion is different from the claimed value at the 5% significance level?

• A) Set up the competing hypotheses to test if at least one proportion is different than the value claimed by MARS.
• B) Calculate the value of the test statistic and determine the degrees of freedom.
• C) Compute the p-value. Does the evidence suggest that at least one proportion is different from the claimed value at the 5% significance level?

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Definitions:

Direct Labor

The work of employees that is directly associated with the production of goods or services.

Factory Overhead

Encompasses all indirect costs involved in the manufacturing process, such as utilities, maintenance, and salaries of non-direct labor.

FIFO Method

"First In, First Out," an inventory valuation method that assumes that the first items placed in inventory are the first sold, affecting the cost of goods sold and inventory valuation.

Direct Materials

Basic substances that can be directly linked to the manufacturing of particular products or services.