Several U.S. airlines carry passengers from the United States to countries in the Pacificregion, and the competition in these flight routes is keen. One of the leverage factors for UnitedAirlines in...

Several U.S. airlines carry passengers from the United States to countries in the Pacificregion, and the competition in these flight routes is keen. One of the leverage factors for UnitedAirlines in Pacific routes is that, whereas most other airlines fly to Pacific destinations two orthree times weekly, United offers daily flights to Tokyo, Hong Kong, and Osaka. Beforeinstituting daily flights, the airline needed to get an idea as to the proportion of frequent fliers inthese 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 frequentbusiness travelers to the three destinations believed that daily service was an important aspect ofairline service. Following changes in the airline industry, marked by reduced fares and otherfactors, the airline management wanted to check whether the proportion of frequent businesstravelers who believe that daily service is an important feature was still about 60%. A randomsample 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 yourconclusion.

May 25, 2022
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