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

Question 68

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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 decision on the hypothesis test using a 5% 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.

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