19) 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. At a = 0.01, test the airline's claim using both the critical value p-value methods.
19) 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. At a = 0.01, test the airline's claim using both the critical value p-value methods.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:**Problem 19: Hypothesis Testing on Airline No-Show Rate**
An airline claims that the no-show rate for passengers is less than 5%. To test this claim, consider a sample of 420 randomly selected reservations, among which 19 passengers were no-shows. To evaluate the airline's claim at a significance level of α = 0.01, perform hypothesis testing using both the critical value method and the p-value method.
**Objective:**
Find the critical value to determine the validity of the airline's claim.
**Instructions:**
1. **Define Null and Alternative Hypotheses:**
- Null Hypothesis (H0): The no-show rate is 5% or more.
- Alternative Hypothesis (H1): The no-show rate is less than 5%.
2. **Calculate Sample Proportion:**
- Sample Proportion (p̂) = Number of No-Shows / Total Reservations = 19/420
3. **Perform the Test:**
- Use the standard normal distribution to find the critical z-value.
- Determine whether the calculated statistic falls in the critical region.
4. **Interpret Results:**
- Based on the test, decide whether to reject or fail to reject the null hypothesis.
This problem requires an understanding of hypothesis testing methodologies, such as calculating sample proportions and using the standard normal z-distribution table for critical values and p-values.
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