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 own 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: $\pi$ $\le$ 5,000 versus H₁: $\pi$ 5,000 B) H₀: $\pi$$\le$0.25 versus H₁: $\pi$ 0.25 C) H₀: $\pi$ $\le$ 0.32 versus H₁: $\pi$ 0.32 D) H₀: $\mu$ $\le$ 5,000 versus H₁: $\mu$ 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 own 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: $\pi$ $\le$ 5,000 versus H₁: $\pi$ > 5,000 B) H₀: $\pi$$\le$0.25 versus H₁: $\pi$ > 0.25 C) H₀: $\pi$ $\le$ 0.32 versus H₁: $\pi$ > 0.32 D) H₀: $\mu$ $\le$ 5,000 versus H₁: $\mu$ > 5,000

Quizplus · Accepted Answer

The hypothesis test is about the proportion ($\pi$) of households that own DVD players, not the mean ($\mu$). Since 5,000 out of 20,000 households is a proportion of 0.25, the correct hypothesis test compares $\pi$ to 0.25.

A Major DVD Rental Chain Is Considering Opening a New π\piπ

A Major DVD Rental Chain Is Considering Opening a New $\pi$