53.A major videocassette 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 videocassette recorders (VCRs). It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have VCRs. The rental chain's conclusion from the hypothesis test using a 3% level of significance is:a)to open a new store.b)not to open a new store.c)to delay opening a new store until additional evidence is collected.d)We cannot tell what the decision should be from the information given.ANSWER:aTYPE: MC DIFFICULTY: EasyKEYWORDS: one-tailed test, proportion, Ztest, conclusion54.An entrepreneur is considering the purchase of a coin-operated laundry. The present owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625. If you were to test the null hypothesis that the daily average revenue was $675, which test would you use?

TYPE: MC DIFFICULTY: ModerateKEYWORDS: two-tailed test, mean, Ztest55.An entrepreneur is considering the purchase of a coin-operated laundry. The present owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625. If you were to test the null hypothesis that the daily average revenue was $675 and decide not to reject the null hypothesis, what can you conclude?TYPE: MC DIFFICULTY: ModerateKEYWORDS: two-tailed test, mean, Ztest, conclusion56.manager of the credit department for an oil company would like to determine whether the average monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the average owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the auditor should conclude that there is evidence that the average balance is different from $75, which test would you use?TYPE: MC DIFFICULTY: EasyKEYWORDS: two-tailed test, mean, t test