Exhibit 9-7

question 92

Multiple Choice

Exhibit 9-7.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 26,2011) .But Keurig's patent on K-cups,the plastic pods used to brew the coffee,is expected to expire in 2012,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. Refer to Exhibit 9-7.At the 1% significance level,does the evidence support the claim?

• A)No,since the value of the test statistic is less than the critical value.
• B)Yes,since the value of the test statistic is less than the critical value.
• C)No,since the value of the test statistic is greater than the critical value.
• D)Yes,since the value of the test statistic is greater than the critical value.

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Definitions:

Sales

The total revenue generated from the sale of goods or services by a company during a specified period.

Warranty Obligations

Commitments made by a seller to repair, replace, or refund products that fail within a certain period.

Warranty Expense

Expenses a business faces for the repair or replacement of products covered by warranty.

Sales

The total revenue generated from selling goods or services over a specific period of time.