Expedia Would Like to Test the Hypothesis That the Proportion

question 93

Multiple Choice

Expedia would like to test the hypothesis that the proportion of Southwest Airline flights that arrive on- time is less than 0.90. A random sample of 140 United Airline flights found that 119 arrived on- time. Expedia would like to set α = 0.05. The correct hypothesis statement for this hypothesis test would be _______ .

• A)H₀: p c 0.90; H₁: p > 0.90
• B)H₀: p c 0.90; H₁: p × 0.90
• C)H₀: p c 0.90; H₁: p < 0.90
• D)H₀: p = 0.90; H₁: p × 0.90

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Definitions:

Break-even Point

The point of business operation at which revenues equal expenses, resulting in no net loss or gain.

Variable Costs

Expenses that change in direct proportion to the amount of production or the volume of sales.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance expenses.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including charges like lease payments, wage bills, and insurance fees.