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

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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) About Me  (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
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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
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4. P-value or critical z0 or t0.
p-value = P(z<-0.4702) = 0.3191
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5. Rejection Region:
z< -2.3263..
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6. Decision: Since the p-value is greater than 1%, fail to reject Ho.
7. Interpretation:
The airline is wrong.
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Cheers,
stan H.