The question
Name: ______________________ Date: ____________ On-time flights: a decision rule, its errors and their consequences (10 points)
Table
Checking an airline's on-time claim
An airline advertises that 90% of its flights arrive on time. A consumer group will file a formal complaint if it finds convincing evidence that fewer than 90% of the airline's flights arrive on time. The group selects a random sample of 150 of the airline's thousands of flights from last month and records whether each arrived on time. The group's rule: file the complaint if 128 or fewer of the 150 flights arrived on time.
| Item | Value |
|---|---|
| Advertised on-time proportion | 0.90 |
| Flights sampled | 150, chosen at random |
| Decision rule | complain if 128 or fewer arrived on time |
(a) Suppose the airline's claim is true. Let be the number of the 150 sampled flights that arrive on time. Identify the distribution of , with its parameters, and calculate . [2 points]
(b) The group's rule is a significance test. Identify the null and alternative hypotheses, defining the parameter. [1 point]
(c) Describe a Type I error in the context of this study, and explain one consequence of making it. [2 points]
(d) Describe a Type II error in the context of this study, and explain one consequence of making it. [2 points]
(e) Interpret the probability you calculated in part (a) in terms of the group's possible errors. [1 point]
(f) The group wants a smaller probability of a Type II error without raising the probability of a Type I error. Explain how it could change its study to do this, and why the change works. [2 points]