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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 chain. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view. State the test of hypothesis that is of interest to the pizza chain.

A. H0: pi <= 5,000 and H1:pi > 5,000
B. H0: pi <= 0.25 and H1: pi > 0.25
C. H0: mu <= 5,000 and H1: mu > 5,000
D. H0: pi <= 0.32 and H1: pi > 0.32 

[b] Since a telephone poll was used, this is a sample. Hence we should use a t-test here. 
Answer: TRUE or FALSE 

[C] The standard deviation cannot be computed here since we do not know a. 
Answer: TRUE or FALSE

Hypothesis testing proportion = 0.25, the proportion to be tested is greater than 0.25. 

The correct hypothesis is B. 

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