Dixie Do-nuts is considering expanding from North Carolina into Tennessee, where the competing doughnut chain Gimme Sugar is based. A market research firm did a blind tasting study in each state to test the hypothesis that the proportion preferring Dixie Do-nuts to Gimme Sugar is the same in both places. The study finds that 54% of the 168 people surveyed in North Carolina prefer Dixie Do-nuts, while
49%
of the 175 people surveyed in Tennessee prefer Dixie Do-nuts.
Based on a 0.05 significance level, which of the following conclusions can be drawn?
The study did not find a statistically significant difference in doughnut preferences between the two states.
More people prefer Dixie Do-nuts in North Carolina than in Tennessee.
The data prove that the alternative hypothesis is true.
Expanding into Tennessee would be a waste of resources.
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