A plan for an executive travelers’ club has been developed by an airline on the premise that 5⁢% of its current customers would qualify for membership. A random sample of 500 customers yielded 40 who would qualify. a) Using this data, test at level .01 the null hypothesis that the company’s premise is correct against the alternative that it is not correct. b) What is the probability that when the test of part (a) is used, the company’s premise will be judged correct when in fact 10⁢% of all current customers qualify? c) What should the sample size be to ensure that Beta(0.1) = 0.01? Use alpha = 0.01.

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A:

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A:

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Q: Suppose that 21% of the subscribers of a cable television company watch the shopping channel at…

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Statements and Logic

Logic is the analysis of general patterns of thoughts without regard to any specific sense of context.