81 The Pepsi Challenge. "Take the Pepsi Challenge" was a famous marketing campaign used by the Pepsi-Cola Company, Coca-Cola drinkers participated in a blind taste test where they were asked to taste unmarked cups of Pepsi and Coke and were asked to select their favorite. In one Pepsi television commercial, an announcer stated that "in recent blind taste tests, more than half the Diet Coke drink- ers surveyed said they preferred the taste of Diet Pepsi." Suppose 100 Diet Coke drinkers took the Pepsi Challenge and 56 preferred the taste of Diet Pepsi. Determine if more than half of all Diet Coke drinkers selected Diet Pepsi in the blind taste test. Select a to minimize the probability of a Type I error. What were the consequences of the test results from Coca-Cola's perspective? Use a = 0.05.

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YU Stern, STAT-UB 1
81 The Pepsi Challenge. "Take the Pepsi Challenge" was
a famous marketing campaign used by the Pepsi-Cola
Company. Coca-Cola drinkers participated in a blind taste
test where they were asked to taste unmarked cups of Pepsi
and Coke and were asked to select their favorite. In one
Pepsi television commercial, an announcer stated that "in
recent blind taste tests, more than half the Diet Coke drink-
ers surveyed said they preferred the taste of Diet Pepsi."
Suppose 100 Diet Coke drinkers took the Pepsi Challenge
and 56 preferred the taste of Diet Pepsi. Determine if more
than half of all Diet Coke drinkers selected Diet Pepsi in
the blind taste test. Select a to minimize the probability of a
Type I error. What were the consequences of the test results
from Coca-Cola's perspective?
Use a = 0.05.
Transcribed Image Text:YU Stern, STAT-UB 1 81 The Pepsi Challenge. "Take the Pepsi Challenge" was a famous marketing campaign used by the Pepsi-Cola Company. Coca-Cola drinkers participated in a blind taste test where they were asked to taste unmarked cups of Pepsi and Coke and were asked to select their favorite. In one Pepsi television commercial, an announcer stated that "in recent blind taste tests, more than half the Diet Coke drink- ers surveyed said they preferred the taste of Diet Pepsi." Suppose 100 Diet Coke drinkers took the Pepsi Challenge and 56 preferred the taste of Diet Pepsi. Determine if more than half of all Diet Coke drinkers selected Diet Pepsi in the blind taste test. Select a to minimize the probability of a Type I error. What were the consequences of the test results from Coca-Cola's perspective? Use a = 0.05.
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