A Consumer Magazine Wants to Figure Out Which of Two

question 47

Multiple Choice

A consumer magazine wants to figure out which of two major airlines lost a higher proportion of luggage on international flights. The magazine surveyed Standard Air (population 1) and Down Under airlines (population 2) . Standard Air lost 45 out of 600 bags. Down Under airlines lost 30 of 500 bags. Does Standard Air have a higher population proportion of lost bags on international flights? Which of the following is the appropriate conclusion at the 5% significance level?

• A) Reject H₀; we can conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
• B) Reject H₀; we cannot conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
• C) Fail to reject H₀; we can conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
• D) Fail to reject H₀; we cannot conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.

---

Definitions:

Consumption Bundle

A combination of various goods and services that a consumer chooses to purchase.

Units Of Y

A measure or quantity of a variable \"Y\", often used in economic and mathematical models to quantify something.

Fixed Proportions

A production process condition where inputs must be used in strict, unchangeable ratios to produce an output; no substitution between inputs is possible.

Utility Function

An economic term describing how different goods or services yield different levels of satisfaction or utility to a consumer.