Question: The publisher of a sports magazine plans to offer new subscribers one of three gifts: a sweatshirt with a logo of their favorite team, a coffee cup with the logo of their favorite team, or a pair of earrings also with the logo of their favorite team. In a sample of 500 new subscribers, the number selecting each gift is reported following. At the 0.05 significance level, is there a preference for the gifts or should we conclude that the gifts are equally liked? If you use Excel, embed the spreadsheet/worksheet into this exercise.

a. Set up the null hypothesis and alternative hypothesis.

b. State the decision rule.

c. Show calculations for the test statistic.

d. What is your decision?