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

question 10

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 proportions of no-shows has changed between last year and this year on flights between these two cities using α = 0.05. The critical value for this hypothesis is ________.

• A) 5.991
• B) 7.815
• C) 9.448
• D) 11.070

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity.

Incremental Cost Approach

A decision-making process focusing on the additional costs and benefits associated with a particular business decision.

Incremental Cost Approach

The method of analyzing the financial information needed for decision making by considering only the costs and benefits that change due to the decision.

Discount Rate

The interest rate used to discount future cash flows back to their present value.