A Consumer Magazine Wants to Figure Out Which of Two

Multiple Choice

A consumer magazine wants to figure out which of two major airlines lost a higher proportion of luggage on international flights. The magazine surveyed Standard Air (population 1) and Down Under airlines (population 2) . Standard Air lost 45 out of 600 bags. Down Under airlines lost 30 of 500 bags. Does Standard Air have a higher population proportion of lost bags on international flights? Which of the following is the appropriate conclusion at the 5% significance level?

A) Reject H₀; we can conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
B) Reject H₀; we cannot conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
C) Fail to reject H₀; we can conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.
D) Fail to reject H₀; we cannot conclude that the proportion of lost luggage is higher for Standard Air than for Down Under airlines.