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

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 pizza chain's conclusion from the hypothesis test using a 5% level of significance is:

a.

to open a new store

b.

not to open a new store

c.

to delay opening a new store until additional evidence is collected

d.

we cannot tell what the decision should be from the information given

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!