A Major DVD Rental Chain Is Considering Opening a New

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 decision on the hypothesis test using a 3% level of significance is

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