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Organic-certified coffee. Coffee markets that conform to
Chapter 7, Problem 75E(choose chapter or problem)
Problem 75E
Organic-certified coffee. Coffee markets that conform to organic standards focus on the environmental aspects of coffee growing, such as the use of shade trees and a reduced reliance on chemical pesticides. A study of organic coffee growers was published in Food Policy (Vol. 36, 2010). In a representative sample of 845 coffee growers from southern Mexico, 417 growers were certified to sell to organic coffee markets while 77 growers were transitioning to become organic certified. In the United States, 60% of coffee growers are organic certified. Is there evidence to indicate that fewer than 60% of the coffee growers in southern Mexico are either organic certified or transitioning to become organic certified? State your conclusion so that there is only a 5% chance of making a Type I error.
Questions & Answers
QUESTION:
Problem 75E
Organic-certified coffee. Coffee markets that conform to organic standards focus on the environmental aspects of coffee growing, such as the use of shade trees and a reduced reliance on chemical pesticides. A study of organic coffee growers was published in Food Policy (Vol. 36, 2010). In a representative sample of 845 coffee growers from southern Mexico, 417 growers were certified to sell to organic coffee markets while 77 growers were transitioning to become organic certified. In the United States, 60% of coffee growers are organic certified. Is there evidence to indicate that fewer than 60% of the coffee growers in southern Mexico are either organic certified or transitioning to become organic certified? State your conclusion so that there is only a 5% chance of making a Type I error.
ANSWER:
Solution:
Step 1 of 2:
In a representative sample of 845 coffee growers from southern Mexico, 417 growers were certified to sell to organic coffee markets while 77 growers were transitioning to become organic certified.
In the United States, 60% of coffee growers are organic certified.
We have to find is there is any evidence to indicate that fewer than 60% of the coffee growers in southern Mexico are either organic certified or transitioning to become organic certified, if there is only 5% chance of making a Type I error.