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

question 117

Short Answer

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 the20,000 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) $H _ { 0 } : \pi \leq 0.32$ versus $H _ { 1 } : \pi > 0.32$
b) $H _ { 0 } : \pi \leq 0.25$ versus $H _ { 1 } : \pi > 0.25$
c) $H _ { 0 } : \pi \leq 5,000$ versus $H _ { 1 } : \pi > 5,000$
d) $H _ { 0 } : \mu \leq 5,000$ versus $H _ { 1 } : \mu > 5,000$

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Definitions:

Potential Liability

The possibility of being responsible for some future obligation or facing legal penalties.

Specially Customized

Tailored or adapted for a specific purpose, user, or requirement, often involving unique modifications or designs.

Indemnification

A contractual obligation of one party to compensate for the loss incurred by another party due to specific acts or events.

Reimbursement

The act of compensating someone for an expense or loss, often by the original payer or a responsible third party.