Question
A large number of complaints have been received in the past six months regarding airlines losing flier's baggage. The airlines claim the problem is much
A large number of complaints have been received in the past six months regarding airlines losing flier's baggage. The airlines claim the problem is much smaller than newspaper articles have indicated. In fact, one airline spokesman claimed that fewer than 1% of all bags fail to arrive at their destinations with the passengers. To check this claim, 800 bags were selected at various airports in the United States when they were checked with this airline. Of those, 6 failed to reach their destinations when their owners arrived.
a). At 5% level of significance, is there sufficient evidence of to support the airline spokesman's claim? Your conclusion must be in terms of the P-Value as well as setting up a Rejection Region. You must show all necessary work.
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