Question
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%
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 24 hours. A consumer group that surveyed a large number of air travellers found that only 103 of 122 people who lost luggage on that airline were reunited with the missing items by the next day.
(a) At a significance level of = 0.10, do the data provide sufficient evidence to conclude that the percentage of people whose lost luggage is recovered and delivered back to them within 24 hours is lower than what the airline claims?
(b) Compute the p-value for this test.
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