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In a market test of a new chocolate raspberry coffee, a poll of 30 people (sample...

In a market test of a new chocolate raspberry coffee, a poll of 30 people (sample 1) from Dobbs Ferry showed 35 percent preferred the new coffee. In Irvington, 17 (sample 2) out of 58 people preferred the new coffee. At a 0.01 significance, testing the hypothesis that a higher proportion of people in Dobbs Ferry prefer the new coffee, what is the value of the test-statistic?

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Answer #1

This is a test for the difference in proportions of people who prefer the new coffee.

We first compute the pooled proportion as:

Now the standard error is computed as:

Now the test statistic is computed as:

Therefore 0.5458 is the required test statistic value here.

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