Question

Suppose a scheduled flight must average at least 60% occupancy to be profitable. A sample of 120 flights on a particular route was studied: the mean occupancy rate per flight was 58% with a sample standard deviation of 11%. We would like to find out if there is sucient evidence to support a claim that this flight route is unprofitable. a) In terms of this problem, what is the Type I error? b) Define and find ↵. c) In terms of this problem, what is the Type II error? d) Define and find when the true mean occupancy rate is 0.62. e) Find the p-value associated with this test. What would you conclude at the 0.10 level

Answer 1

Answer: see the graphic

Explanation:

A. Type I error helps us to conclude that the flight is not profitable, when in fact it is profitable.

B. a = 0.05

C. Type II error does not show that the flight is profitable