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 Ha: p b. What is the sample proportion from an American Express-sponsored survey that found 355 of 553 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? yes or no?

Explanation / Answer

a. Ho:p=0.67
Ha:p<2/3=0.67

b. phat=355/546=0.65

c. The test statistic is
Z=(phat-p)/[p*(1-p)/n]

=(0.65-0.67)/sqrt(0.67*0.33/546)

= -0.99

The p-value is P(Z< -0.99)= 0.1611 (check standard normal table)

d. Since the p-value is larger than 0.05, we do not reject Ho.

So we can not conclude that the proportion of business travelers who use a laptop computer on overnight business trips is greater than two-thirds

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