**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 = 19/4203. **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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Answered: 19) An airline claims that the no-show…

MATLAB: An Introduction with Applications

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ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

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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.