Airline companies recognize that empty seats represent lost revenues that can never be recovered. To avoid losing revenues, the companies often book more passengers than there are seats. Then, when a flight experiences fewer no- shows than expected, some passengers are "bumped" from their flights (are denied boarding). Incentives are provided to encourage passengers to give up their reserved seat voluntarily, but occasionally some passengers are involuntarily bumped from the flight. Obviously, these incidents can reflect poorly on customer satisfaction. Suppose Southwest Airlines would like to estimate the true proportion of involuntarily bumped passengers across all domestic flights in the industry. In a pilot sample of 55 domestic passengers, 5 were involuntarily bumped from their flights. Determine the sample size needed to construct a 98% confidence interval with a margin of error no more than 5% to estimate the true proportion of involuntarily bumped passengers. Which of the following is the needed sample size? 55 05 100 180

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 27PPS
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Airline companies recognize that empty seats represent lost
revenues that can never be recovered. To avoid losing
revenues, the companies often book more passengers than
there are seats. Then, when a flight experiences fewer no-
shows than expected, some passengers are "bumped" from
their flights (are denied boarding). Incentives are provided to
encourage passengers to give up their reserved seat
voluntarily, but occasionally some passengers are
involuntarily bumped from the flight. Obviously, these
incidents can reflect poorly on customer satisfaction.
Suppose Southwest Airlines would like to estimate the true
proportion of involuntarily bumped passengers across all
domestic flights in the industry. In a pilot sample of 55
domestic passengers, 5 were involuntarily bumped from their
flights. Determine the sample size needed to construct a
98% confidence interval with a margin of error no more than
5% to estimate the true proportion of involuntarily bumped
passengers. Which of the following is the needed sample
size?
O 55
05
100
180
Transcribed Image Text:Airline companies recognize that empty seats represent lost revenues that can never be recovered. To avoid losing revenues, the companies often book more passengers than there are seats. Then, when a flight experiences fewer no- shows than expected, some passengers are "bumped" from their flights (are denied boarding). Incentives are provided to encourage passengers to give up their reserved seat voluntarily, but occasionally some passengers are involuntarily bumped from the flight. Obviously, these incidents can reflect poorly on customer satisfaction. Suppose Southwest Airlines would like to estimate the true proportion of involuntarily bumped passengers across all domestic flights in the industry. In a pilot sample of 55 domestic passengers, 5 were involuntarily bumped from their flights. Determine the sample size needed to construct a 98% confidence interval with a margin of error no more than 5% to estimate the true proportion of involuntarily bumped passengers. Which of the following is the needed sample size? O 55 05 100 180
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