A pizza 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 have a favorable view of its brand.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view.State the test of hypothesis that is of interest to the pizza chain. A)H ₀: $\pi$ $\le$0.32 versus H₁: $\pi$ $\gt$ 0.32 B)H ₀: $\pi$$\le$0.25 versus H₁: $\pi$ $\gt$ 0.25 C)H ₀: $\pi$ $\le$5,000 versus H₁: $\pi$ $\gt$ 5,000 D)H₀: ? $\le$ 5,000 versus H₁: ? $\gt$ 5,000

Question

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The correct hypothesis test is interested in whether the proportion ($\pi$) of households with a favorable view exceeds 0.25 (5,000 out of 20,000), not the actual number of households. Thus, the null hypothesis ($H_0$) should state that the proportion is less than or equal to 0.25, and the alternative hypothesis ($H_1$) should state that the proportion is greater than 0.25.

A Pizza Chain Is Considering Opening a New Store in an Area