Several U.S. airlines carry passengers from the United States to countries in the Pacific region, and the competition in these flight routes is keen. One of the leverage factors for United Airlines in Pacific routes is that, whereas most other airlines fly to Pacific destinations two or three times weekly, United offers daily flights to Tokyo, Hong Kong, and Osaka. Before instituting daily flights, the airline needed to get an idea as to the proportion of frequent fliers in these routes who consider daily service an important aspect of business flights to the Pacific. From previous information, the management of United estimated that 60% of the frequent business travelers to the three destinations believed that daily service was an important aspect of airline service. Following changes in the airline industry, marked by reduced fares and other factors, the airline management wanted to check whether the proportion of frequent business travelers who believe that daily service is an important feature was still about 60%. A random sample of 250 frequent business fliers revealed that 130 thought daily service was important. Compute the p-value for this test (is this a one-tailed or a two-tailed test?), and state your conclusion.

  • CreatedJune 03, 2015
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