A Pizza Chain Is Considering Opening a New Store in an Area

question 72

Multiple Choice

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 brand.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view.State the test of hypothesis that is of interest to the pizza chain.

• A)H ₀ : \(\pi\) \(\le\)0.32 versus H₁ : \(\pi\) \(\gt\) 0.32
• B)H ₀ : \(\pi\)\(\le\)0.25 versus H₁ : \(\pi\) \(\gt\) 0.25
• C)H ₀ : \(\pi\) \(\le\)5,000 versus H₁ : \(\pi\) \(\gt\) 5,000
• D)H₀ : ? \(\le\) 5,000 versus H₁ : ? \(\gt\) 5,000

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Definitions:

Par Value

The face value of a bond or stock as designated by the corporation at the time of issuance.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an active market.

Undervalued

Refers to an asset or company being priced below its perceived true value based on financial metrics or future potential.

Overvalued

A situation where a security or asset is trading at a price exceeding its intrinsic value.