The Coca-Cola Company and PepsiCo have dominated the non alcoholic beverage industry for several years. The competition between these two companies, which is called the Cola Wars, is legendary. It has been finally declared that Coca-

Cola is 8.1% more favorable in the American market compared to Pepsi. Recently, you conducted a survey with 345 people who drink Coca-Cola and found that 42% have a favorable impression of Coca-Cola, while for the 450 people who drink Pepsi, only 25% were favorable.

a. Use a 1% significance level and the p-value approach for a hypothesis testing and determine whether the same proportion of people like Coca-

Cola more than Pepsi in the American market or not.

b. Determine the margin of error for a 99% confidence interval.

c. Based on your findings in part

b, write a conclusion.