A major videocassette 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 videocassette recorders (VCRs). It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have VCRs. State the test of interest to the rental chain. A) H₀: ? ? 0.32 versus H₁: ? 0.32 B) H₀: ? ? 0.25 versus H₁: ? 0.25 C) H₀: µ ? 5,000 versus H₁: µ 5,000 D) H₀: ? ? 5,000 versus H₁: ? 5000

Question

A major videocassette 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 videocassette recorders (VCRs). It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have VCRs. State the test of interest to the rental chain. A) H₀: ? ? 0.32 versus H₁: ? > 0.32 B) H₀: ? ? 0.25 versus H₁: ?> 0.25 C) H₀: µ ? 5,000 versus H₁: µ > 5,000 D) H₀: ? ? 5,000 versus H₁: ? > 5000

Quizplus · Accepted Answer

The test of interest is to determine if more than 25% (5,000 out of 20,000) of the households have VCRs, which corresponds to testing if the proportion is greater than 0.25.

A Major Videocassette Rental Chain Is Considering Opening a New