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. Which of the following tests will be the most appropriate?
A) t test for mean
B) Z test for proportion
C) pooled-variance t test
D) separate-variance t test

Question

Quizplus · Accepted Answer

The appropriate test in this case would be the Z test for proportion, as we are testing a single proportion (e.g., the proportion of households in the area equipped with DVD players), and we have a large enough sample size (n=300) to assume a normal distribution. The t test for mean would be appropriate if we were testing a sample mean, but that is not the case here. The pooled-variance and separate-variance t tests would be appropriate if we were comparing two means, but again, that is not relevant in this scenario.

A Major DVD Rental Chain Is Considering Opening a New