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

question 119

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.What critical value should be used to test this claim at the 1% significance level?

• A) 2.33
• B) 2.36
• C) 2.58
• D) 2.61

---

Definitions:

Warranty Principle

This principle suggests that we are less likely to trust or believe information on social media that can be easily manipulated or falsified.

Avoidant Attachment

A type of attachment style characterized by a desire to maintain independence and emotional distance in relationships, often as a protective measure against vulnerability.

Childhood Caregivers

Individuals, often parents or guardians, responsible for providing support, protection, and basic needs to children during their formative years.

Nurturing

Providing care, support, and encouragement, thereby promoting growth, well-being, and development.