Many Franchisers Favor Owners Who Operate Multiple Stores by Providing

question 83

Multiple Choice

Many franchisers favor owners who operate multiple stores by providing them with preferential treatment. Suppose the Small Business Administration would like to perform a hypothesis test to investigate if 80% of franchisees own only one location using α = 0.05. A random sample of 120 franchisees found that 85 owned only one store. The correct hypothesis statement for this hypothesis test would be
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• A)H₀: p c 0.80; H₁: p > 0.80
• B)H₀: p = 0.80; H₁: p × 0.80
• C)H₀: p > 0.80; H₁: p c 0.80
• D)H₀: p × 0.80; H₁: p = 0.80

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