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:

Variables

Variables are elements, features, or factors that can change or vary within an experiment or data set. They are pivotal in both experimental designs and statistical analysis.

Independent Variables

Factors that are manipulated or controlled in an experiment to investigate their effects on dependent variables.

Demographic Information

Data relating to the characteristics of a population or specific groups within it, such as age, sex, income, and employment status, often used in research to identify patterns or trends.

Web Survey

A research method involving the collection of data through questionnaires or surveys distributed over the Internet.