Many franchisers favor owners who operate multiple stores by providing them with preferential treatment. Suppose the Small Business Administration would like to perform a hypothesis test to investigate if 80% of franchisees own only one location using α = 0.05. A random sample of 120 franchisees found that 85 owned only one store. The p- value for this hypothesis test would be------ .

Question

Quizplus · Accepted Answer

The p-value of 0.0118 indicates that there is a statistically significant difference from the hypothesized proportion of 80% (or 0.80) of franchisees owning only one location, given that the sample proportion is 85/120 = 0.7083 and the significance level is α = 0.05. This p-value is calculated using a hypothesis test for a proportion, comparing the observed sample proportion to the hypothesized proportion.

Many Franchisers Favor Owners Who Operate Multiple Stores by Providing