Hypothesis Testing
You are still on the payroll of Princess Foods Corporation. The HR department has heard that you have learned about hypothesis testing and there are two scenarios where they could use your help!
Caption: As you prepared your memo about the new "Princess Select" line, you discovered that the sample size that you were provided was insufficiently small. Using a larger sample of 200 customers, you conducted this research and the data is now ready for your analysis.
The following results were found:
1. Sample mean for price was $46.60 with a standard deviation of $5.90
2. Proportion who would purchase the new product was 78%
Mieke: You have the new data already? Great. So, like I said previously, at least 85% of the customers must express some desire for the product. The customers who are interested in the product must be willing to pay at least $47.50.
Using this information, complete the following:
1. Conduct hypothesis tests for price and proportion.
2. Based on this updated data and Mieke's parameters, should the new line be marketed? Explain your answer.
Completing Assignments
- Read the illustrated scenario on hypothesis testing.
- Complete calculations and write the memos.
- You should include the raw data and a clear interpretation of the data that justifies your findings.