Question
A cereal company puts vouchers for a free box of cereal in some of the boxes of cereal they produce. They claim that 20% of
A cereal company puts vouchers for a free box of cereal in some of the boxes of cereal they produce. They claim that 20% of the boxes contain the voucher. A consumer advocate is concerned that the proportion of boxes with vouchers is actually less than 20%, so he selects a random sample of 50 of the boxes and finds 7 boxes contain the voucher for a free box of cereal. To determine if the sample proportion of p^=0.14 provides convincing evidence that the true proportion of boxes that contain the voucher is less than p=0.2, the consumer advocate simulates 100 SRSs of size n=50 from a population in which p=0.2. The dotplot shows the results. Based on the simulation, is there convincing evidence that the proportion of vouchers in the boxes is less than 20%?