A major airline company is concerned that its proportion of late arrivals has substantially increased in the past month. Historical data shows that on the average 18% of the company airplanes have arrived late. In a random sample of 1,240 airplanes, 310 airplanes have arrived late. If we are conducting a hypothesis test of a single proportion to determine if the proportion of late arrivals has increased: What is the value of the calculated test statistic?
Null hypothesis
H0: p ≤ 0.18
vs
Alternative hypothesis
Ha: p > 0.18
We have for given example,
Population proportion value is =0.18
x=310
n=1240
Level of significance = 0.05
Estimate for sample proportion = 0.25
Z test statistic formula for proportion
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