The Airline Industry Defines "No-Shows" as Passengers Who Have Purchased

question 47

Multiple Choice

The airline industry defines "no-shows" as passengers who have purchased a ticket but fail to arrive at the gate on time for departure. United Airlines operates many flights from Philadelphia to Dallas. The table below represents the observed number of no-shows that occurred on a random sample of 120 flights between Philadelphia and Dallas this year, and experienced the no-show proportions last year. United Airlines would like to know if the proportion of no-shows has changed between last year and this year on flights between these two cities using α = 0.05. The conclusion for this hypothesis would be that because the test statistic is ________.

• A) Reject the null hypothesis, we cannot conclude that the proportions for no-shows has changed from last year to this year
• B) Reject the null hypothesis, we can conclude that the proportions for no-shows has changed from last year to this year
• C) Do not reject the null hypothesis, we cannot conclude that the proportions for no-shows has changed from last year to this year
• D) Do not reject the null hypothesis, we can conclude that the proportions for no-shows has changed from last year to this year

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Definitions:

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent a hostile takeover.

Unfriendly Suitor

A company or individual that makes a takeover attempt on another company without the consent or cooperation of the target company’s management.

Golden Parachute

A contract provision that gives a company's executives significant benefits if they are terminated as a result of a merger or takeover.

Golden Parachutes

Large financial compensation packages agreed upon by a company and its top executives, which are triggered if the executive is terminated as a result of a merger or takeover.