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

question 179

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 brand.It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view.The value of the test statistic in this problem is approximately equal to:

• A)2.80
• B)2.60
• C)1.94
• D)1.30

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Definitions:

Cash Disbursements

The payments a company makes during a period, including expenses, debt payments, and purchase of assets.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs associated with maintenance, utilities, and quality control.

Fixed Selling Expenses

Fixed selling expenses are those costs associated with selling a product that do not change with the level of production or sales, such as salary of sales staff and rent for office space.

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.