Question 4

Many complaints have been received in the past six months regarding airlines losing fliers' baggage. The airlines claim that problem is nowhere near as great as the newspaper articles have indicated. In fact, one airline spokesman claimed that less than 1% of all bags fail to arrive at the destination with the passenger. To test this claim, 800 bags were randomly selected at various airports in the United States when they were checked with this airline. Of these, 6 failed to reach the destination when the passenger (owner) arrived.

1.Is this sufficient evidence to support the airline spokesman's claim? Test using a significance level of 0.05. Discuss.

2.Estimate the proportion of bags that fail to arrive at the proper destination using a technique for which 95% confidence applies.