# solution

â€œMade in the USAâ€ survey. Refer to the Journal of Global Business (Spring 2002) study of what â€œMade in the USAâ€ on product labels means to the typical consumer, Exercise 2.154 (p. 143). Recall that 106 shoppers participated in the survey. Their responses, given as a percentage of U.S. labor and materials in four categories, are summarized in the table (p. 628). Suppose a consumer advocate group claims that half of all consumers believe that â€œMade in the USAâ€ means â€œ100%â€ of labor and materials are produced in the United States, one-fourth believe that â€œ75% to 99%â€ are produced in the United States, one-fifth believe that â€œ50% to 74%â€ are produced in the United States, and 5% believe that â€œless than 50%â€ are produced in the United States.

a. Describe the qualitative variable of interest in the study. Give the levels (categories) associated with the variable.

b. What are the values of p1, p2, p3, and p4, the probabilities associated with the four response categories hypothesized by the consumer advocate group?

Â c. Give the null and alternative hypotheses for testing the consumer advocate groupâ€™s claim.

d. Compute the test statistic for testing the hypotheses, part c.

e. Find the rejection region of the test at Â = .10.

f. State the conclusion in the words of the problem.

g. Find and interpret a 90% confidence interval for the true proportion of consumers who believe â€œMade in the USAâ€ means â€œ100%â€ of labor and materials are produced in the United States.

Exercise 2.154

a. What type of data-collection method was used?

b. What type of variable, quantitative or qualitative, is measured?

c. Present the data in graphical form. Use the graph to make a statement about the percentage of consumers who believe â€œMade in the USAâ€ means 100% U.S. labor and materials.

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