The Pizza Shack has been experimenting with different recipes for their pizza crust, thinking they might replace their current recipe. They are planning to sample pizza made with the new crust. Before sampling, a strategy is needed so that after the tasting results are in, Pizza Shack will know how to interpret their customers’ preferences. The decision is not being taken lightly because there is much to be gained or lost depending on whether or not the decision is a popular one. A one-tailed hypothesis test of p = P(prefer new crust) = 0.50 is being planned.
a. If Ha: p = 0.50 is used, explain the meaning of the four possible outcomes and their resulting actions.
b. If Ha: p = 0.50 is used, explain the meaning of the four possible outcomes and their resulting actions.
c. Which alternative hypothesis do you recommend be used, p = 0.5 or p > 0.5? Explain