A major Blu-ray rental chain is considering opening a new store in an area that currently does not have any such stores.The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area are equipped with Blu-ray players.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have Blu-ray players.State the test of hypothesis that is of interest to the rental chain. A)H₀: π ≤ 0.32 versus H_{1 :} π 0.32 B)H₀: π ≤ 0.25 versus H_{1 :}π 0.25 C)H₀: π ≤ 5,000 versus H_{1 :} π 5,000 D)H₀: μ ≤ 5,000 versus H₁: μ 5,000

Question

A major Blu-ray rental chain is considering opening a new store in an area that currently does not have any such stores.The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area are equipped with Blu-ray players.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have Blu-ray players.State the test of hypothesis that is of interest to the rental chain. A)H₀: π ≤ 0.32 versus H_{1 :} π > 0.32 B)H₀: π ≤ 0.25 versus H_{1 :}π > 0.25 C)H₀: π ≤ 5,000 versus H_{1 :} π > 5,000 D)H₀: μ ≤ 5,000 versus H₁: μ > 5,000

Quizplus · Accepted Answer

The test of hypothesis of interest to the rental chain involves determining if more than 5,000 of the 20,000 households in the area have Blu-ray players. This can be done by testing the population proportion (π) of households with Blu-ray players. The null hypothesis (H0) would be that π is less than or equal to 0.25 (i.e. less than or equal to 5,000 out of 20,000 households), and the alternative hypothesis (Ha) would be that π is greater than 0.25 (i.e. more than 5,000 out of 20,000 households). Therefore, the correct choice is B, as it provides the appropriate null and alternative hypotheses for testing the population proportion.

A Major Blu-Ray Rental Chain Is Considering Opening a New