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A snack food company is trying to decide whether to manufacture a new flavour of tortilla chips. The market research group conducted a telephone survey of 5,000 households and found that 540 respondents indicated that they would purchase this new flavour of tortilla chips. A similar study conducted a year earlier showed that the level of interest was 10%. Which of the following statements is true?
Answer:
a.At a 1% level of significance, the manufacturer should conclude that there has been an increase in the level of interest in this new flavour.
b.At a 5% level of significance, the manufacturer should conclude that there has been an increase in the level of interest in this new flavour.
c.At a 5% level of significance, the manufacturer should conclude that there has been no increase in the level of interest in this new flavour.
d.This is a one-sided test, with the rejection region in the left tail under the curve.
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