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QUESTION

Sunshine Air has determined that their no-show rate for passengers booked on a flight is 6%.

Sunshine Air has determined that their no-show rate for passengers booked on a flight is 6%. The Airline has recently increased the cost of its travel insurance and and suspects the no-show rate for passengers will decrease.

A random sample of 380 reservations resulted in 18 no-shows.

At the 0.10 significance level, is there strong enough sample evidence to suggest that the no-show rate in less than 6%?

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