STAT301 - Dr. B.

Thorne Name(s):
Spring 2017
Hypothesis Testing Exercises

*************************************************************************************
Directions: 1) Define the problem (state the null and alternative hypotheses in parameter and
administrative form); 2) Analyze the data (find the test-statistic and the p-value); and 3) Recommend an
action (make statistical and administrative decisions). Show all your work including any formula that you
use..
*************************************************************************************

How satisfied are customers of a particular international airline with the companys services? You have
been hired to provide this airline with feedback that will assist the company with its quality improvement
efforts. Management claims that:

1) More than 80% of its customers find the reservation process easy;
2) Fewer than 10% of its flights depart late;
3) Lost luggage is down from last years 20% rate.

You randomly sample 500 people who recently flew to China with this particular airline. The following is
a partial listing of questions and results from your survey:

Was the reservation process easy? Yes: 410 No: 90

Did your flight depart on time? Yes: 452 No: 48

Did the airline lose any of your luggage? Yes: 80 No: 420

Use these survey results to test each of the companys claims. Be sure for each test that you include the
three steps stated above in the directions and explained in class on Tuesday, March 22. Be thorough, be
neat, and show all your work.