A Major DVD Rental Chain Is Considering Opening a New

question 54

Multiple Choice

A major DVD rental 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 are equipped with DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. 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:

Income

Money received by a person or household over a certain period of time from work, investments, business ventures, or other sources.

Fallacy of Composition

The erroneous belief or argument that what is true for a part is necessarily true for the whole group or entity.

Economic Relationships

The interactions between different variables within the economy, such as supply and demand, and price and quantity.

Average Variable Cost

The per-unit variable cost, determined by dividing the total variable costs by the number of units produced.