1 in a taste comparison test it was found that 58 of 100, Ask an Expert

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1. In a taste comparison test, it was found that 58 of 100 persons preferred the chunky version of a pea- nut butter over the creamy type. An interested observer would like to determine whether this proportion (0.58) is significantly greater than the (0.50) proportion that would tend to result from chance. Using the 0.05 level of significance, what conclusion will be reached?

2. An exterminator claims that no more than 10% of the homes he treats have termite problems within 1 year after treatment. In a sample of 100 homes, local officials find that 14 had termites less than 1 year after being treated. At the 0.05 level of significance, evaluate the credibility of the exterminator's statement.

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