In a sample of 400 people, 250 indicated that they prefer domestic wines, while 140 said they prefer European wines, and 10 indicated no preference. We want to use the sign test to determine if there is evidence of a significant difference in the preferences for the two types of wine

a. Provide the hypotheses to be tested.
b. Compute the mean.
c. Compute the standard deviation.
d.. At 95% confidence, test to determine if there is evidence of a significant difference in the preferences for the two types of wine.


a. Ho: P = 0.5
Ha: P ? 0.5
b. 195
c. 9.874
d.. Test Statistic Z = 5.57; p-value < 0.05, therefore reject Ho (p-value is almost zero)

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