An airline's public relations department claims that when
luggage is lost, 88% is recovered and delivered to its owner within
24 hours. A consumer group who surveyed a large number of air
travelers found that 138 out of 160 people who lost luggage on that
airline were reunited with the missing items by the next day. At
the 0.10 level of significance, do the data provide sufficient
evidence to conclude that the proportion of times that luggage is
returned within 24 hours is less than 0. 88?
Identify the hypothesis statements you would use to test
this.
H0: p = 0.88
versus HA : p < 0.88
H0: p < 0.88
versus HA : p = 0.88
H0: p = 0.863
versus HA : p < 0.863