A Major DVD Rental Chain Is Considering Opening a New

question 31

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 rental chain's conclusion from the hypothesis test using a 3% 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.

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Definitions:

Environmental Performance

A measure of how well an organization or country is progressing towards meeting its environmental goals and obligations.

Social Performance

The measure of an organization's ability to manage its socio-environmental impacts, fulfill social responsibilities, and achieve social goals.

Agency Problem

The agency problem arises when there is a conflict of interest between the goals of principals (such as shareholders) and agents (such as company executives) managing the company.

Market Share

The portion of a market controlled by a particular company or product.