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A. (ii)
B. (i)
C. (iii)
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. 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 0.0026. What is the decision on the hypothesis
test Ho: ≤0.25 vs H₁: π > 0.25, using 5% level of significance?
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sh the exam.
(i)
Reject Ho.
(ii)
Fail to reject Ho.
(iii)
There is not enough information to make decision.
