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 brain. It conducts a telephone poll of 300 randomly selected
Households in the area and finds that 96 have a favorable view. The value of the test statistic in
This problem is approximately equal to:
A) 2.80
B) 2.60
C) 1.94
D) 1.30

Question

Quizplus · Accepted Answer

The correct answer is A because the test statistic is approximately equal to 2.80. This can be calculated using the formula z = (p - P) / sqrt(P(1-P)/n), where p is the sample proportion, P is the population proportion, and n is the sample size. In this case, p = 96/300 = 0.32, P = 0.5, and n = 300. Plugging these values into the formula, we get z = (0.32 - 0.5) / sqrt(0.5(1-0.5)/300) = 2.80.

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