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) versus
B) versus
C) versus
D) versus

Question

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) versus 
B) versus 
C) versus 
D) versus

Quizplus · Accepted Answer

The relevant hypothesis test in this case would be a one-sample proportion test. The null hypothesis would be that the proportion of households with a favorable view of the pizza chain is equal to or less than 0.25 (5,000/20,000). The alternative hypothesis would be that the proportion is greater than 0.25.

Therefore, the relevant choice letter is B, that has to do with one-sample proportion test. The test of hypothesis that is of interest to the pizza chain is whether more than 5,000 of the 20,000 households in the area have a favorable view of its brand. This is a one-tailed hypothesis test, as the chain will only open a new store if the proportion of households with a favorable view is greater than 0.25 (5,000/20,000).

The appropriate test for this scenario is a one-sample proportion test. The null hypothesis would be that the proportion of households with a favorable view of the brand is equal to or less than 0.25, and the alternative hypothesis would be that the proportion is greater than 0.25.

Option B is the closest match to this scenario, as it is a comparison of two different proportions.

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