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. State the test of hypothesis that is of interest to the rental chain.

A) H₀: π ≤ 0.32 versus H₁: π > 0.32
B) H₀: π ≤ 0.25 versus H₁: π > 0.25
C) H₀: π ≤ 5,000 versus H₁: π > 5,000
D) H₀: μ ≤ 5,000 versus H₁: μ > 5,000