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.The rental chain's conclusion from the hypothesis test using a 5% level of significance is
A)to open a new store.
B)not to open a new store.
C)to delay opening a new store until additional evidence is collected.
D)We cannot tell what the decision should be from the information given.

Question

Quizplus · Accepted Answer

The sample proportion is 96/300 = 0.32. The null hypothesis is that 5,000/20,000 = 0.25 of households have Blu-ray players. The test statistic is calculated and compared to the critical value for a 5% significance level. Since 0.32 is significantly greater than 0.25, the chain should open a new store.

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