Question: A simple random sample of 200 consumers were asked which of two soft drinks (A or B) they preferred, and 125 said they preferred B. This data can be used to check whether more than 50% of consumers would prefer softdrink B over A.

a) If the null hypothesis is true, out of the sample 200 consumers, what is the expected number who would prefer soft drink B?

b) Compute the value of the test statistic.

c) Compute the P-Value for the one-sided test

d) What is the conclusion?

A. More than 50% of consumers would prefer soft drink B.

B. It may be that 50% of consumers prefer soft drink B.