A Travel Agent Wants to Determine If Clients Have a Preference

question 48

Essay

A travel agent wants to determine if clients have a preference of four different airlines. For a sample of 200 flight reservations, there were 70, 45, 48, and 37 reservations for the four different airlines.
A) Set up the competing hypotheses to test if the population proportions are not equal to each other.
B) Calculate the value of the test statistic.
C) Specify the critical value at the 5% significance level.
D) What is the conclusion of the hypothesis test?

• A) Set up the competing hypotheses to test if the population proportions are not equal to each other.
• B) Calculate the value of the test statistic.
• C) Specify the critical value at the 5% significance level.
• D) What is the conclusion of the hypothesis test?

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Definitions:

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Raw Materials

Any materials that go into the final product.

Book Value per Share

The equity available to common shareholders divided by the number of outstanding shares, indicating the value of a company’s equity on a per-share basis.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.