SOLUTION: Question: An airline claims that the no-show rate for passengers is less than 5%. In a sample of 420 randomly selected reservations, 19 were no-shows. Use a level of significan

Algebra.Com
Question 257518: Question:
An airline claims that the no-show rate for passengers is less than 5%. In a sample of 420 randomly selected reservations, 19 were no-shows. Use a level of significance of  = 0.01 to test the airlines claim. (Round phat to 4 decimal places.)
1. H0 :
Ha :
2.  =
3. Test statistics:
4. P-value or critical z0 or t0.
5. Rejection Region:

6. Decision:
7. Interpretation:
Sorry to send you questions with not working the problems, as stated in previous questions with this chapter has been very difficult to undertstand. Hope you can help out. Thanks

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
An airline claims that the no-show rate for passengers is less than 5%. In a sample of 420 randomly selected reservations, 19 were no-shows. Use a level of significance of  = 0.01 to test the airlines claim. (Round phat to 4 decimal places.)
1. H0 : p >= 0.05
Ha :p < 0.05
----------------------
2. alpha = 0.01
3. Test statistics:
sample proportion: 19/420 = 0.04524
z(0.045) = (0.045-0.05)/sqrt[0.05*0.95/420] = -0.4702
--------------------------------------------------------
4. P-value or critical z0 or t0.
p-value = P(z<-0.4702) = 0.3191
------------------------------------
5. Rejection Region:
z< -2.3263..
---------------------------
6. Decision: Since the p-value is greater than 1%, fail to reject Ho.
7. Interpretation:
The airline is wrong.
=========================
Cheers,
stan H.

RELATED QUESTIONS

An airline claims that the no-show rate for passengers is less than 5%. In a sample of... (answered by stanbon)
Find the P-value for the indicated hypothesis test. An airline claims that the no-show (answered by Boreal)
An airline claims that the no-show rate for passengers booked on its flights is less than (answered by Theo)
You are the operations manager for an airline and you are considering a higher fare level (answered by ikleyn)
From experience, an airline knows that only 80% of the passengers booked for a certain... (answered by ewatrrr)
You are the operations manager for an airline and you are considering a higher fare level (answered by math_tutor2020)
An airline has a policy of booking 21 passengers on a flight with 20 seats. Find the... (answered by stanbon)
Airline passengers arrive randomly and independently at the passenger-screening facility... (answered by GingerAle)
From experience, an airline knows that only of the passengers booked for a certain... (answered by ikleyn,Alan3354)