Saturday, August 21, 2010

How do you find the P-value for the indicated hypothesis test?

An airline claims that the no-show rate for passengers booked on its flights is less than 6%. Of 380 randomly selected reservations, 18 were no-shows. Find the P-value for a test of the airline's claim.





I am not worried so much about the answer as to HOW to get the answer.How do you find the P-value for the indicated hypothesis test?
Let P be the proportion of no-show rate for passengers booked on its flights.





Ho: P =0.06


Ha: P %26lt; 0.06





Estimated p = 18 / 380 = 0.0474


Variance of proportion = p*(1-p)/n


= 0.06(0.94)/380 =0.0001484


S.D. of p is sqrt[0.000148] = 0.0122


Z = ( 0.0474 - 0.06 ) / 0.0122 = -1.0368





From Normal probability table , P( z %26lt; -1.0368) = 0.1492


p-value = 0.1492
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