A food company is planning to market a new type of frozen yogurt. However, before marketing this yogurt, the company wants to find what percentage of the people like it. The company’s management has decided that it will market this yogurt only if at least 35% of the people like it. The company’s research department selected a random sample of 400 persons and asked them to taste this yogurt. Of these 400 persons, 112 said they liked it.
a. Testing at a 2.5% significance level, can you conclude that the company should market this yogurt?
b. What will your decision be in part a if the probability of making a Type I error is zero? Explain
c. Make the test of part a using the p-value approach and α = .025.