Question

Part A.

A travel agency claims that at least 58% of all airline bookings are made online. However a sample of 70 airline reservations revealed that only 52% of recent bookings were made online. At the 10% significance level, carry out the hypothesis test. First, state the null and alternative hypotheses.

a). H0: p ≠ 0.58 or 58%; H1: p = 0.58 or 58%

b). H0: p = 0.58 or 58%; H1: p ≠ 0.58 or 58%

c). H0: p ≤ 0.58 or 58%; H1: p > 0.58 or 58%

d). H0: p ≥ 0.58 or 58%; H1: p < 0.58 or 58%

e). None of the above

Part B.

Describe the normal curve appropriate for this test of hypothesis.

a). Two-tail with critical Z values of ±1.285

b). One-tail (right-tail) with critical Z value of 1.285

c). Two-tail with critical Z values of ±1.285

d). One-tail (left-tail) with critical Z value of -1.285

e). None of the above

Part C.

Calculate p-value

a). About 0.15 *

b). About 0.05

c). About 0.45

d). None of the above

Answer 1