An airline's public relations department says that the airline rarely loses passengers' luggage. It further claims that on those occasions when luggage is lost, 90% is recovered and delivered to its owner within 24hours. A consumer group that surveyed a random sample of air travelers found that only 103 of 122 people who lost luggage on that airline were reunited with the missing items by the next day. Is there sufficient evidence to conclude that the proportion of people reunited with their luggage within 24 hours is less than that claimed by the airline? Conduct the appropriate hypothesis test at =:025 significance level.

a.Step 1:

State what the population parameter is;

then, state the null hypothesis and the alternative hypothesis.

b.Step 2: State your level of significance .

c.Step 3: Check that the necessary conditions for the distribution of the test statistic hold and

state the sampling distribution of the test statistic. Then nd the observed value of the test statistic.

d.Steps 4 and 5:

Use your preferred method (finding the p-value or finding the rejection region) to reach

the proper conclusion. Please do not forget to write the conclusion in the context of this problem.