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

Question

Quizplus · Accepted Answer

The sample proportion is 96/300 = 0.32. The null hypothesis is that the true proportion is 0.25 (5,000 out of 20,000). Using a one-sample z-test for proportions, the test statistic is calculated, and the p-value is approximately 0.0026.

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