Question

A cigarette manufacturing firm claims that its brand a of the cigarettes outsells its brand by 8%. If it is found that 42 out of a sample of 200 smokers prefer brand a and 18 out of another random sample of 100 smokers prefer brand b, test whether the 8% difference is valid claim

Answer 1

Answer:

Step-by-step explanation:

Given A cigarette manufacturing firm claims that its brand a of the cigarettes outsells its brand by 8%. If it is found that 42 out of a sample of 200 smokers prefer brand a and 18 out of another random sample of 100 smokers prefer brand b, test whether the 8% difference is valid claim

A cigarette manufacturing company claims it outsells its brand by 8%

So number of persons who prefer brand A will be 42/200

Number of persons who prefer brand B will be 18/100

So difference between people who like brand A more than brand B is

42/200 – 18/100 = 6/200

Now percentage difference between two brands brand A and brand B will be

6/200 x 100 = 3%

Now it is equal to 3% and the given statement 8% difference is not a valid claim.