Paul Owns a Mobile Wood-Fired Pizza Oven Operation

question 53

Multiple Choice

Paul owns a mobile wood-fired pizza oven operation. A couple of his clients complained about his dough at a recent catering, so he changed his dough to a newer product. Using the old dough, there were 6 complaints out of 385 pizzas. With the new dough, there were 16 complaints out of 340 pizzas. Let p₁ be the proportion of customer complaints with the old dough and p₂ be the proportion of customer complaints with the new dough. State the competing hypotheses to determine if the proportion of customer complaints using the old dough is less than the proportion of customer complaints using the new dough.

• A) H₀: p₁ - p₂ ≤ 0, H_A: p₁ - p₂ > 0
• B) H₀: p₁ - p₂ ≥ 0, H_A: p₁ - p₂ < 0
• C) H₀: p₁ - p₂ = 0, H_A: p₁ - p₂ ≠ 0
• D) H₀: p₁ - p₂ > 0, H_A: p₁ - p₂ ≤ 0

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Definitions:

Rate Of Return

The appreciation or depreciation of an investment over a set period, quantified as a percentage of the investment's starting value.

Cash Flows

The net amount of cash being transferred into and out of a business, reflecting operational, investing, and financial activities.

Undertake

To commit oneself to and begin (an enterprise or responsibility); to take on.

APR

Annual Percentage Rate, the annual rate charged for borrowing or earned through an investment.