Question

A consultant wants to test whether it makes sense to incur the costs of moving canned salmon into Winnipeg from Toronto. She asked 100 people shopping in a Winnipeg store if they liked canned salmon, and 63% said yes. She had previously asked the same question of 150 people shopping in a Toronto store, and she found that 55% said no. It only makes sense to expand into Winnipeg if the proportion of people who like canned salmon is at least 10% higher than in Toronto. Using a ten percent level of significance, she can (reject/not reject) reject X(not reject, cannot reject) the null hypothesis because the pvalue (rounded to four decimal points, eg a number lke 0.3432) is equal to ten, .10) percent. × (0.1024, 0. 102412194, .1024) and this is (greater/less) less (greater) than x (10,

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Answer #1

Here she can not reject the null hypothesis because the pvalue is equal to 0.1024 and this is greater than 0.10 . .

Here our level of significance is 0.10, if pvalue is greater than level of significance we accept null hypothesis otherwise we reject it .

Here we must use Chi square indeprendence test by using this 2\times2 contingency table.

Yes No
Toronto 63 27
Winnipeg 18 82(\simeq82.5)
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