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The airline industry and overweight baggage

Airlines must be careful about the total weight of baggage carried by a plane on a commercial flight. Passengers with items exceeding the maximum single-item weight (usually about 70 pounds) must pay a fee (usually about $50.00 per item). Airlines continually monitor the proportion of overweight items in order to evaluate the appropriateness of the overweight fees. English Air charges different amounts for overweight items on flights to the U.S. and Canada than it does on flights within Europe. Recently, a random sample of 276 items checked on English Air flights to the U.S. and Canada contained 35 overweight items, and an independent, random sample of 268 items checked on English Air flights within Europe contained 55 overweight items. Based on these samples, can we conclude, at the .05 level of significance, that there is a difference between the proportion of all items on English Air flights to the U.S. and Canada which are overweight (P1) and the proportion of all items on English Air flights within Europe which are overweight (P2)?

Perform a two-tailed test. Then fill in the table below.

Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. (If necessary, consult a list of formulas.)

A. Null Hypothesis

B. Alternative Hypothesis

C. Type of Test Statistic

D. The Value of Test Statistic - (Round 3 decimal places)

E. The P Value - (Round 3 decimal places)

F. Can we conclude that the proportion of items which are overweight is different between the two types of Eenglish Air flights (yes or no)?

Solution Preview

A. Null Hypothesis
There is no significant difference between the proportion of all items on English Air flights to the U.S. and Canada which are overweight (P1) and the proportion of all items on English Air flights within Europe which are overweight (P2).

B. Alternative Hypothesis
There is significant ...

Solution Summary

Step by step method for testing the hypothesis under 5 step approach is discussed in this solution. An Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

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