Answer:
The claim made by Mar's is correct.
Step-by-step explanation:
In this case we need to test whether M&M Mars Co.'s claim about the proportion of different colored M&Ms in a small bag is correct or not.
The hypothesis is:
H₀: The claim made by Mar's is not correct.
Hₐ: The claim made by Mar's is correct.
The proportions claimed are as follows:
Orange: 20%
Green: 16%
Blue: 24%
Other: 40%
A sample of 35 M&M's are selected.
The observed frequencies are:
Observed = {O = 4, G = 8, B = 5 and Ot = 18}
Compute the expected frequencies as follows:
[tex]E(O)=4\times 20\%=0.80\\\\E(G) = 8\times 16\%=1.28\\\\E(B)=5\times 24\%=1.20\\\\E(Ot)=18\times 40\%=7.20[/tex]
Compute the Chi-square statistic as follows:
[tex]\chi^{2}=\sum[\frac{(O-E)^{2})}{E}][/tex]
[tex]=[\frac{(4-0.80)^{2}}{0.80}]+[\frac{(8-1.28)^{2}}{1.28}]+[\frac{(5-1.20)^{2}}{1.20}]+[\frac{(18-7.20)^{2}}{7.20}]\\\\=12.80+35.28+12.03+16.20\\\\=76.31[/tex]
The Chi-square test statistic value is 76.31.
The degrees of freedom of the test is:
df = n - 1
= 4 - 1
= 3
Compute the p-value as follows:
[tex]p-value=P(\chi^{2}_{0.05,3}<76.31)<0.00001[/tex]
The p-value < 0.05.
The null hypothesis will be rejected at 5% level of significance.
Thus, concluding that the claim made by Mar's is correct.