Hypothesis Testing: Testing a New Soft Drink

A new soft drink is being market tested. A sample of 400 individuals participated in the taste test and 100 indicated that they like the taste. We are interested in determining if more than 21% of the population will like the new soft drink.

a. Set up the null and the alternative hypotheses.
b. Determine the test statistic.
c. Determine the p-value.
d. At 95% confidence, test to determine if more than 21% of the population will like the new soft drink.

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... soft drink, we denote it by p^.

p^=100/400=0.25.

Note that the sample size n=400. So, the test statistic is

z=(p^-0.21)/sqrt[0.21*(1-0.21)/n]
...