A Major Blu-Ray Rental Chain Is Considering Opening a New

question 67

Multiple Choice

A major Blu-ray rental 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 are equipped with Blu-ray players.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have Blu-ray players.The decision on the hypothesis test using a 5% level of significance is

• A)to reject H₀ in favor of H₁.
• B)to accept H₀ in favor of H₁.
• C)to fail to reject H₀ in favor of H₁.
• D)We cannot tell what the decision should be from the information given.

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Definitions:

Downward Shift

In economics, refers to a decline in the position of a demand or supply curve on a graph, indicating a decrease in quantity demanded or supplied at any given price.

Keynes

An economist who advocated for government intervention in markets to mitigate the adverse effects of economic recessions and depressions through fiscal and monetary policies.

Government Spending

Expenditures made by the public sector on goods and services such as healthcare, education, and defense, which can impact the country's economy.

Federal Budget Deficit

The shortfall where the federal government's expenditures exceed its revenues in a given fiscal year.