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

question 20

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 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. 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:

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often leading to a drop in prices.

Equilibrium Price

Equilibrium price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Government Implementation

The process by which government agencies put laws, regulations, or policies into practice.

Price Floor

A minimum legal price set above the equilibrium price, leading to surpluses as supply exceeds demand.