Answer: Choice C
C. No, because a difference in proportions of 0.4 or more occurred 7 out of 200 times, meaning the difference is not statistically significant and the new additive is not more effective.
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Step-by-step explanation:
If the new additive was more effective than the old one, then the difference in proportions (new - old) should be fairly large.
Count the dots over the x axis labels of "0.4" through "0.6"
- 5 dots over "0.4"
- 1 dot over "0.5"
- 1 dot over "0.6"
That makes 5+1+1 = 7 dots total.
There are 7 instances where the difference of proportions is 0.4 or larger.
This is out of 200 observations, so 7/200 = 0.035 = 3.5% of the differences have 0.4 or larger.
This is not very significant. The general rule of thumb is to use 5% as the threshold. Some stats textbooks will use 10%. Other times your teacher will specify the significance level. The Greek letter alpha is often used.
Because 3.5% < 5%, we consider the new additive to not be that effective compared to the original additive.