A travel agency wants to promote pleasure trips into space and wants to know which of the two commercial companies should they promote Virgin Galactic or Blue Origin? The one preferred by the customers will be the one they decide to promote. For this reason they take a random sample of 16 potential travelers, and they ask if they would prefer Virgin Galactic or Blue Origin. Let X be the number of travelers who preferred Virgin Galactic and let p=X/16 denote the corresponding proportion.

• Suppose that we want to show that Virgin Galactic is preferred to Blue Origin. Please formulate the null and alternative hypotheses and calculate the rejection region. Use =0.05
• Suppose that 11 out of 16 prefer Virgin Galactic and that = 0.05, is this enough evidence to show that Virgin Galactic is preferred to Blue Origin? Perform the test and give your conclusion. Which company should they promote?