Suppose a scheduled airline flight must average at least65% occupancy in order to be profitable to the airline. Occupancy rates were recorded daily for a regularly scheduled flight on each of120 days,showing a mean occupancy per flight of62% and a standard deviation of10%.

(a)

Ifis the mean occupancy per flight and if the company wishes to determine whether or not this scheduled flight is unprofitable, give the alternative and the null hypotheses for the test.

H₀:= 65 versusH_a:> 65

H₀:< 65 versusH_a:> 65

H₀:65 versusH_a:= 65

H₀:= 65 versusH_a:< 65

H₀:= 65 versusH_a:65

(b)

Does the alternative hypothesis in part (a) imply a one- or two-tailed test? Explain.

Since only small values ofxwould tend to disprove the null hypothesis, this is a one-tailed test.

Since only large values ofxwould tend to disprove the null hypothesis, this is a two-tailed test.

Since only large values ofxwould tend to disprove the null hypothesis, this is a one-tailed test.

Since small or large values ofxwould tend to disprove the null hypothesis, this is a two-tailed test.

Since only small values ofxwould tend to disprove the null hypothesis, this is a two-tailed test.

(c)

Do the occupancy data for the 120 flights suggest that this scheduled flight is unprofitable? Test using= 0.05.(Round your answers to two decimal places. If the test is one-tailed, enter NONE for the unused region.)

test statisticz=rejection regionz>z<

State your conclusion.

H₀is rejected. There is sufficient evidence to indicate that the flight is unprofitable.

H₀is not rejected. There is sufficient evidence to indicate that the flight is unprofitable.

H₀is rejected. There is insufficient evidence to indicate that the flight is unprofitable.

H₀is not rejected. There is insufficient evidence to indicate that the flight is unprofitable.

You may need to use the appropriateappendix tableortechnologyto answer this question.