For the domestic airline industry the amount of time each plane must spend in maintenance is a
Question:
For the domestic airline industry the amount of time each plane must spend in maintenance is a critical factor. The records show that for a sample of 49 planes, Central Airways average downtime is 12 hours. The industry average is 11 hours, and the standard deviation is 3.5 hours At a significance level of 10, should the company conclude that its downtime differs significantly from the industry average?
a. What type of hypothesis test is this (no-tailed lower or upper tail)? State null and alternative hypotheses.
b. Use the level of significance to determine the "critical value (cut-off point). draw on a distribution
c. What does the level of significance mean in this problem?
d. Compute the test statistic
e. Make a decision: Accept or Reject Ho
f. Interpret your decision
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne