[Step-by-Step] Suppose a scheduled airline flight must average at least 60% occupancy in order to be profitable to the airline. An examination of the occupancy
Question: Suppose a scheduled airline flight must average at least 60% occupancy in order to be profitable to the airline. An examination of the occupancy rate for 120 flights at 10:00am from Atlanta to Dallas showed a mean occupancy per flight of 58% and a standard deviation of 11%.
- If \[\mu \] is the mean occupancy per flight and if the company wishes to determine whether or not this scheduled flight is unprofitable, give the alternative and null hypothesis for the test.
- Is this a one-tailed or two-tailed test?
- Do the occupancy data for the 120 flights suggest that this scheduled flight is
unprofitable using \[\alpha =0.05\] ?
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