Question

. A bus line claims that the no-show rate for passengers is at most 8%. In a sample of 360 randomly selected reservations, 38 were no-shows. At α = 0.05, test the bus line’s claim.

Answer 1

Solution :

This is the right tailed test .

The null and alternative hypothesis is

H₀ : p 0.08

H_a : p > 0.08

= x / n = 38 / 360 = 0.1056

Test statistic = z

= - P₀ / [P_{0 *} (1 - P₀ ) / n]

= 0.1056 - 0.08 / [(0.08 * 0.92) / 360]

= 1.787

P(z > 1.787) = 1 - P(z < 1.787) = 0.037

P-value = 0.037

= 0.05

P-value <

Reject the null hypothesis .

There is sufficient evidence to suggest that the no-show rate for passengers is at most 8% .