An airline claims that the no-show rate for passengers is less than 5%. In a sample...

An airline claims that the no-show rate for passengers is less than 5%. In a sample of 420 randomly selected reservations, the rate of no-show is 4.5%. Set up the null and alternative hypothesis to test this claim. Describe what type 1 error and type 2 error are in this case. Find the test statistic and make a decision at 5% level of significance.

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Expert Solution

Here claim is that p<0.05

So hypothesis is vs

Type 1 error is that p is not less than 0.05, but we conclude it that it is p<0.05

Type 2 error is that p is less than 0.05, but we conclude that it is not less than 0.05

So test statistics is

P value is

As P value is greater than alpha we fail to reject the null hypothesis

Hence we do not have sufficient evidence to support the claim that p<0.05

orchestra answered 1 year ago

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