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An​ airline's public relations department says that the airline rarely loses​ passengers' luggage. It further claims...

An​ airline's public relations department says that the airline rarely loses​ passengers' luggage. It further claims that on those occasions when luggage is​ lost, 92 % 92% is recovered and delivered to its owner within 24 hours. A consumer group who surveyed a large number of air travelers found that only 137 of 169 people who lost luggage on that airline were reunited with the missing items by the next day. Does this cast doubt on the​ airline's claim? Explain

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Expert Solution

Ho :   p =    0.92      
H1 :   p ╪   0.92      
              
Level of Significance,   α =    0.05      
Number of Items of Interest,   x =   137      
Sample Size,   n =    169      
              
Sample Proportion ,    p̂ = x/n =    0.810650888      
              
Standard Error ,    SE = √( p(1-p)/n ) =    0.020868708      
              
Z Test Statistic =    Z = ( p̂-p)/SE =    -5.239860288      
              
  
p-Value   = 0.0000 [ excel formula: =2*normsdist(z)
Conclusion:     p-value>α , do not reject null hypothesis

          
yes, there is insufficient evidence to reject the claim at 0.05 significnace level

milcah answered 1 year ago
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