A major DVD 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 DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. State the test of hypothesis that is of interest to the rental chain.
A) H₀: π ≤ 0.32 versus H₁: π 0.32
B) H₀: π ≤ 0.25 versus H₁: π 0.25
C) H₀: π ≤ 5,000 versus H₁: π 5,000
D) H₀: μ ≤ 5,000 versus H₁: μ 5,000

Question

A major DVD 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 DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. State the test of hypothesis that is of interest to the rental chain.
A) H₀: π ≤ 0.32 versus H₁: π > 0.32
B) H₀: π ≤ 0.25 versus H₁: π > 0.25
C) H₀: π ≤ 5,000 versus H₁: π > 5,000
D) H₀: μ ≤ 5,000 versus H₁: μ > 5,000

Quizplus · Accepted Answer

The hypothesis test is about the proportion of households with DVD players. The chain wants to know if more than 5,000 out of 20,000 households have DVD players, which translates to a proportion greater than 0.25 (5,000/20,000).

A Major DVD Rental Chain Is Considering Opening a New