A Major DVD Rental Chain Is Considering Opening a New

question 96

Multiple Choice

A major DVD 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 DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. The decision on the hypothesis test using a 3% 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:

Decubitus Ulcer

A sore that develops on the skin due to prolonged pressure from lying in one position, also known as a pressure sore or bedsore.

Automobiles

Automobiles that run on an internal combustion engine or are powered by electricity, designed for moving individuals or cargo.

Income

Financial returns received regularly from work or investment sources.

Preferences

Individual choices or priorities regarding products, services, or outcomes based on factors like taste, convenience, and value.