CherryBerry Soda, Inc. claims that 15 percent of the population can identify its products. In efforts to boost their identity, CherryBerry employs a famous spokesperson to advertise. A survey is then taken to assess the results of the ad campaign. The results show that 17 percent of the 1000 respondents can identify CherryBerry products. Has the advertising campaign increased product identity or is the difference due to chance? Use the 0.10 significance level.
a. State the null and alternate hypotheses.
b. State the decision rule.
c. Compute the value of the test statistic.
d. What is your decision regarding the null hypothesis? Interpret the result.