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.
... soft drink, we denote it by p^.
Note that the sample size n=400. So, the test statistic is