Last year, a soft drink manufacturer had 21% of the market. In an effor to increase their portion of the market, the manufacturer has introduced a new flavor in their soft drinks. 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 a 5% level of significance, test to determine if more than 21% of the population will like the new soft drink. Clearly state your decision and conclusions using the p-value approach.