document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=260252>Question 260252</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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 &#61537; = 0.01 to test the airlines claim. (Round phat to 4 decimal places.)<BR>\n" );
document.write( "(References: examples 1 through 3  pages 408 - 410, end of section exercises  9 - 14   pages 411 - 412)  (6 points)\r<BR>\n" );
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document.write( "1.	H0 : <BR>\n" );
document.write( "Ha : <BR>\n" );
document.write( "2.	&#61537; = <BR>\n" );
document.write( "3.	Test statistics:  <BR>\n" );
document.write( "4.	P-value or critical z0 or t0.    <BR>\n" );
document.write( "5.	Rejection Region:   <BR>\n" );
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document.write( "6.	Decision:  <BR>\n" );
document.write( "7.	Interpretation: <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #191690 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=191690\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 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 &#61537; = 0.01 to test the airlines claim. (Round phat to 4 decimal places.)<BR>\n" );
document.write( "(References: examples 1 through 3 pages 408 - 410, end of section exercises 9 - 14 pages 411 - 412) (6 points) \r<BR>\n" );
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document.write( "1. <BR>\n" );
document.write( "H0 : p >= 0.05 <BR>\n" );
document.write( "Ha : p < 0.05 (airline claim)<BR>\n" );
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document.write( "2. &#61537; = 1%<BR>\n" );
document.write( "3. Test statistics:<BR>\n" );
document.write( "z(19/420) = (0.0452 - 0.05)= 0.0048/sqrt[0.05*0.95/420] = -0.4514<BR>\n" );
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document.write( "4. P-value or critical z0 or t0.<BR>\n" );
document.write( "p-value = P(z< -0.4478) = normalcdf(-100,-0.4514) = 0.3259..<BR>\n" );
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document.write( "5. Rejection Region:<BR>\n" );
document.write( "cv = invNorm(0.01) = -2.326..<BR>\n" );
document.write( "Reject Ho if ts < -2.326<BR>\n" );
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document.write( "6. Decision: Since the p-value is greater than 1%, fail to reject Ho.<BR>\n" );
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document.write( "7. Interpretation:<BR>\n" );
document.write( "The proportion of no-shows is greater than or equal to 5% at <BR>\n" );
document.write( "a 1% significance level.  These test results support denying<BR>\n" );
document.write( "the airline's claim.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. <BR>\n" );
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