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

question 89

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 26,2011) .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.Which of the following should be used to develop the null and alternative hypotheses to test this claim?

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Definitions:

Investment Earnings

The return or income generated from various forms of investments, such as stocks, bonds, or real estate.

Present Value

A financial concept that calculates the current value of a future sum of money or stream of cash flows, given a specific rate of return.

Discount Rate

The interest rate used to discount future cash flows to their present value, important in investment and financial decision making.

Cash Flows

The total movement of cash and assets akin to cash entering and leaving a business enterprise.