Question
A certain airline guarantees customers that the airline rarely loses passengers' baggage. The public relations department claims that on those occasions when luggage is lost,
A certain airline guarantees customers that the airline rarely loses passengers' baggage. The public relations department claims that on those occasions when luggage is lost, 92% is recovered and delivered to its owner within 24 hours. An independent consumer group surveyed travelers on this airline and found that 145 out of 165 people who lost luggage received their missing bags within 24 hours. You will conduct a hypothesis test to see whether the data collected by the independent consumer group is different from the airline's claim.
(a)Identify the population of interest in the context of the question.
(b)State the null and alternative hypotheses in the context of the question in words.
(c) Determine/compute any conditions that must be valid to carry out the test in the context of the question.
(d)Compute the test statistic.
(e) Find the exact value or provide a range of values for the P-value. Sketch your model, label and shade the corresponding region (a sketch by hand is fine).
(f) State your conclusion in the context of the question with a 5% significance level.
(g) Based on your conclusion above, what type of error are you at risk of making?
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