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

question 42

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:

Total Revenue

The total amount of money received by a company from sales of its goods or services, calculated as the quantity sold multiplied by the selling price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the surplus generated beyond the normal profit expected in a competitive market.

Total Costs

The complete sum of expenses incurred in the production of goods or services, including both fixed and variable costs.

Perfectly Competitive

A market structure where there are many buyers and sellers, products are identical, and there is free entry and exit in the market.