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

question 99

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 brain.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view.The p-value associated with the test statistic in this problem is approximately equal to:

• A)0.0100
• B)0.0051
• C)0.0026
• D)0.0013

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained within the company rather than paid out to shareholders as dividends, often used for reinvestment in the business or to pay down debt.

Marginal Tax Rate

The rate of tax applied to your next dollar of income, used in progressive tax systems where tax rates increase as income rises.

Percentage Of Sales Approach

Financial planning method in which accounts are projected depending on a firm’s predicted sales level.

Net Income

The final profit figure for a company after deducting taxes and expenses from the revenue.