Question
A manager at a casual dining restaurant noted that 15% of customers ordered soda with their meal. In an effort to increase soda sales, the
A manager at a casual dining restaurant noted that 15% of customers ordered soda with their meal. In an effort to increase soda sales, the restaurant begins offering free refills with every soda order for a two-week trial period. During this trial period, 2100 customers were served and 357 of them ordered a soda.
The restaurant wants to know if offering free refills significantly increased the percentage of customers who bought sodas. This will be tested at a significance level of 0.05.
a) Find the sample proportion, p-hat.
b) Calculate the standard error. Is or used to calculate the standard error? Why?
c) Calculate the test-statistic (remember for proportions this is a z-score!) and the corresponding p-value. Round your test-statistic to 2 decimal places and your p-value to four decimal places.
d) Based on your p-value, what is the test decision (reject or do not reject the null hypothesis)?
e) Write out a conclusion for this hypothesis test in context based on your test decision.
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