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S2 help, hypothesis testing

The manufacturer of supergold margarine claims that people prefer this to butter. As part of an advertising campaign he asked 5 people to tastes a sample of 'supergold' and a sample of butter and say which they prefer. Four people choose 'supergold'. Assess the manufacturer's claim in the light of this evidence. Use a 5% level of significance.


I looked at the solution to this question, and they use 0.5 as their probability of success. And I can't understand how they got this. As I used, 4/5, 0.8, which is wrong apparently.

Can someone please show me how they worked out 'p' to be 0.5?

should it not be distributed like this X~B(5,0.8)?
solution uses X~B(5,0.5)

Thank you, in advance.
hanah_101
I looked at the solution to this question, and they use 0.5 as their probability of success. And I can't understand how they got this. As I used, 4/5, 0.8, which is wrong apparently.

Can someone please show me how they worked out 'p' to be 0.5?

should it not be distributed like this X~B(5,0.8)?
solution uses X~B(5,0.5)

Thank you, in advance.


It is the claim of the manufacturer that p = 0.8. This claim is not verified, that's why you're testing it. You have to start with the idea that people do not have lean towards one or the other. The distribution is to have p=0.5 where people are as likely to prefer margarine over butter as they are to prefer butter over margarine. Now you look at the likelihood that P(X4) P(X \geq 4) and whether it is significant.
Reply 2
The null hypothesis would be there is no preference for either. The alternative hypothesis is the people prefer supergold.

H0: p=0.5 (p=probability an individual likes supergold)
h1: p>0.5

Assuming p=0.5 how likely is the result that 4 or more out of the 5 like supergold?

P(x>=4)=0.1875.

Not that unlikely. You don't mention a significance level but I'd say there isn't much evidence of a preference for supergold.
rnd
You don't mention a significance level.


It says in the caption that it needs to be tested at a significance level of 5%.
Reply 4
Clarity Incognito
It says in the caption that it needs to be tested at a significance level of 5%.


So it does. I'm afraid I'm getting a bit sloppy about things on TSR lately. Thanks.
Reply 5
Thanks I understand it now, however I don't get why you would use 0.5, why not any other number?

Can you please explain why you would assume that the probability of people liking/disliking supergold is 0.5?

hope this makes sense,
thanks.
hanah_101
Thanks I understand it now, however I don't get why you would use 0.5, why not any other number?

Can you please explain why you would assume that the probability of people liking/disliking supergold is 0.5?

hope this makes sense,
thanks.


rnd puts it quite nicely 'The null hypothesis would be (that) there is no preference for either.'

I'm sure you've covered the null hypothesis. When you are doing these significance tests, you start with a standard distribution that you predict it will follow. You'd expect that if you tossed a fair coin n number of times that the probability of landing heads (success) is equal to landing a tails (fail). We designate heads as success and tails as fail here. Now if someone claimed that the coin was unfair, and the coin was tested and the results showed that 9/10 times the coin landed heads. We look at the probability that P(X9) P(X \geq 9) . So in this case we start with p = 0.5, that the coin is equal and test claims that it is not.
Reply 7
Clarity Incognito
rnd puts it quite nicely 'The null hypothesis would be (that) there is no preference for either.'

I'm sure you've covered the null hypothesis. When you are doing these significance tests, you start with a standard distribution that you predict it will follow. You'd expect that if you tossed a fair coin n number of times that the probability of landing heads (success) is equal to landing a tails (fail). We designate heads as success and tails as fail here. Now if someone claimed that the coin was unfair, and the coin was tested and the results showed that 9/10 times the coin landed heads. We look at the probability that P(X9) P(X \geq 9) . So in this case we start with p = 0.5, that the coin is equal and test claims that it is not.


Thanks, I get what your saying, but with the coin example you 'already' know the likely probability of getting a head or a tail, therefore you can predict a null hypothesis. You know that a normal unbiased coin is 50/50 heads or tail. Where as with this example we assumed?

You see where I am getting confused?

appreciate your help,
thanks
hanah_101
Thanks, I get what your saying, but with the coin example you 'already' know the likely probability of getting a head or a tail, therefore you can predict a null hypothesis. You know that a normal unbiased coin is 50/50 heads or tail. Where as with this example we assumed?

You see where I am getting confused?

appreciate your help,
thanks


No problem, I completely understand what you're getting at, the coin example probably wasn't the best but I thought it would be the most straight forward. Essentially, yes, the null hypothesis is an assumption. It's a logical assumption, we can't tell as yet whether the margarine or the butter is preferable.

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