An airline promotion to business travelers is based on the assumption that no mo

Question

An airline promotion to business travelers is based on the assumption that no more than two-thirds of business travelers use a laptop computer on overnight business trips.

a. State the hypotheses that can be used to test the assumption.
H0: p Selectgreater than or equal to .6667, greater than .6667, less than or equal to .6667, less than .6667, equal to .6667, not equal to .6667
Ha: p Selectgreater than or equal to .6667, greater than .6667, less than or equal to .6667, less than .6667, equal to .6667, not equal to .6667

b. What is the sample proportion from an American Express-sponsored survey that found 363 of 543 business travelers use a laptop computer on overnight business trips (to 4 decimals)?

c. What is the p-value (to 4 decimals)?

d. Using  = .05, can you conclude that the proportion of business travelers who use a laptop computer on overnight business trips is greater than two-thirds?
SelectYesNo

Explanation / Answer

Set Up Hypothesis
Null, H0:P<=0.667
Alternate, H1: P>0.667
Test Statistic
No. Of Success chances Observed (x)=363
Number of objects in a sample provided(n)=543
No. Of Success Rate ( P )= x/n = 0.6685
Success Probability ( Po )=0.667
Failure Probability ( Qo) = 0.333
we use Test Statistic (Z) for Single Proportion = P-Po/Sqrt(PoQo/n)
Zo=0.66851-0.667/(Sqrt(0.222111)/543)
Zo =0.0746
| Zo | =0.0746
Critical Value
The Value of |Z | at LOS 0.05% is 1.64
We got |Zo| =0.075 & | Z | =1.64
Make Decision
Hence Value of |Zo | < | Z | and Here we Do not Reject Ho
P-Value: Right Tail - Ha : ( P > 0.07458 ) = 0.47028
Hence Value of P0.05 < 0.47028,Here We Do not Reject Ho

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