A plan for an executive travelers’ club was developed by Epsilon Airline on the premise that 5% of its customers would qualify for membership. You suspect it’s less than 5%. A random sample of 500 customers yields 18 who would qualify.  Using this result to test at significance level α = 0.01 the null hypothesis that the airline’s premise is correct against the alternative that the proportion is less than the claimed 5%.

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A plan for an executive travelers’ club was developed by Epsilon Airline on the premise that 5% of its customers would qualify for membership. You suspect it’s less than 5%. A random sample of 500 customers yields 18 who would qualify. 

Using this result to test at significance level α = 0.01 the null hypothesis that the airline’s premise is correct against the alternative that the proportion is less than the claimed 5%.

6. A plan for an executive travelers' club was developed by Epsilon Airline on
the premise that 5% of its customers would qualify for membership. You suspect it's
less than 5%. A random sample of 500 customers yields 18 who would qualify.
Using this result to test at significance level a = 0.01 the null hypothesis that the airline's
premise is correct against the alternative that the proportion is less than the claimed
5%.
Transcribed Image Text:6. A plan for an executive travelers' club was developed by Epsilon Airline on the premise that 5% of its customers would qualify for membership. You suspect it's less than 5%. A random sample of 500 customers yields 18 who would qualify. Using this result to test at significance level a = 0.01 the null hypothesis that the airline's premise is correct against the alternative that the proportion is less than the claimed 5%.
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