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.
-The p-value associated with the test statistic in this problem is approximately equal to
A) 0.0100.
B) 0.0026.
C) 0.0051.
D) 0.0013.

Question

Quizplus · Accepted Answer

The p-value of 0.0026 suggests that there is a very low probability (0.26%) of observing a sample with 96 or fewer households owning DVD players out of 300 if the true proportion of households owning DVD players in the area was greater than 5,000 out of 20,000 (or 25%). This low p-value indicates strong evidence against the null hypothesis, suggesting that the proportion of households owning DVD players in the area is likely less than 25%.

A Major DVD Rental Chain Is Considering Opening a New