1. An airline\'s public relations department says that the airline rarely loses
ID: 3311460 • Letter: 1
Question
1. An airline's public relations department says that the airline rarely loses passengers' luggage. It further claims that on those occasions when luggage is lost, 90% is recovered and delivered to its owner within 24 hours. A consumer group that surveyed a large number of travelers found that only 103 of 122 people who lost luggage on that airline were reunited with the missing items by the next day. Does this case doubt on the airline's claim. Use the following guidelines to test the airlines hypothesis. A. State the null hypothesis. Ho: B. State the null hypothesis. HA: C. State the test statistic: D. Compute the test statistic: E. State the conclusion using a full sentence and the correct wording to reject or fail to reject the null hypothesis:Explanation / Answer
H0 : less than 90% of the lost luggage is recovered and delivered
Ha : 90% of the lost luggage is recovered and delivered
p0 = 0.9
phat = 103/122 = 0.844
so we use the formula for z stat as
z = (phat - p0)/sqrt(p0*(1-p0)/n)
= (0.844-0.9)/sqrt(0.9*0.1/122)
= -2.061
now we check the p value from the z table as
0.01965
as the p value is less than 0.05 , assumed alpha , hence we reject the null hypothesis in favor of alternate hypothesis to conclude
90% of the lost luggage is recovered and delivered
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