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The Pepsi Challenge. “Take the Pepsi Challenge” was a
Chapter 7, Problem 81E(choose chapter or problem)
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 drinkers 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 \(\alpha\) to minimize the probability of a Type I error. What were the consequences of the test results from Coca-Cola’s perspective?
Questions & Answers
QUESTION:
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 drinkers 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 \(\alpha\) to minimize the probability of a Type I error. What were the consequences of the test results from Coca-Cola’s perspective?
ANSWER:Step 1 of 3
In a 100 Diet drinkers took the Pepsi challenge and 56 preferred the taste of Diet Pepsi.
The claim is to select to minimize the probability of a Type 1 error and the consequences of the test results from Coca-Cola’s perspective.
To minimize the probability of Type 1 error, we select = 0.01.