Question

Suppose a scheduled airline flight must average at least 62% occupancy in order to be profitable to the airline. An examination of the occupancy rate for 120 10:00 a.m. flights from Atlanta to Dallas showed a mean occupancy per flight of 58% and a standard deviation of 9%. (a) If u is the mean occupancy per flight and if the company wishes to determine whether or not this scheduled flight is unprofitable, give the alternative and the null hypotheses for the test. O Holi = 62 versus H: > 62 O Ho: < 62 versus H, u > 62 O Ho: u = 62 versus H: 4 * 62 O Ho: u + 62 versus H: 4 = 62 O Ho: = 62 versus H: 4 < 62 (b) Does the alternative hypothesis in part (a) imply a one- or two-tailed test? Explain. Since only small values of x would tend to disprove the null hypothesis, this is a one-tailed test. Since only large values of x would tend to disprove the null hypothesis, this is a one-tailed test. Since only small values of x would tend to disprove the null hypothesis, this is a two-tailed test. Since only large values of would tend to disprove the null hypothesis, this is a two-tailed test. Since small or large values of x would tend to disprove the null hypothesis, this is a two-tailed test. (c) Do the occupancy data for the 120 flights suggest that this scheduled flight is unprofitable? Test using a = 0.05. (Round your answers to two decimal places. If the test is one-tailed, enter NONE for the unused region.) test statistic 2- rejection region z> State your conclusion. O He is not rejected. There is sufficient evidence to indicate that the flight is unprofitable. O H, is rejected. There is sufficient evidence to indicate that the flight is unprofitable. O He is not rejected. There is insufficient evidence to indicate that the flight is unprofitable. O He is rejected. There is insufficient evidence to indicate that the flight is unprofitable.

Answer 1

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