An airline claims that the no-show rate for passengers is less than 5%. In a sample of 420 randomly selected reservations, 19 were no-shows. At α = 0.01, test the airline's claim. State the null and the alternative hypotheses and justify the answer.
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The null hypothesis (H0) is that the no-show rate for passengers is 5% or more. This is stated as H0: p ≥ 0.05. The alternative hypothesis (H1) is that the no-show rate for passengers is less than 5%. This is stated as H1: p < 0.05. Show more…
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