Question

A major Blu-ray 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 Blu-ray players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have Blu-ray players. The decision on the hypothesis test using a 5% level of significance is

Question 13 options:

	to fail to reject H0 in favor of H1.
	We cannot tell what the decision should be from the information given.
	to accept H0 in favor of H1.
	to reject H0 in favor of H1.

Answer 1

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= 5,000 of the 20,000

= (5000/20000)*100
= 0.25

To reject H₀ in favor of H₁.

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