A large number of complaints has been received in past six months about airlines losing fliers' baggage. The airlines claim the problem is nowhere near as great as the newspaper articles have indicated. In fact, one airline spokesman claimed that less than 1% of all bags fail to arrive at destination with the passenger. To test this claim, 800 bags were randomly selected at different airports in the United States when they were checked with this airline. Of these, 6 failed to reach destination when the passenger (owner) arrived.
a. Is this sufficient evidence to support airline spokesman's claim? Test using a significance level of 0.05. Discuss
B. Estimate the proportion of bags which fail to arrive at the proper destination using a method for which 95% confidence applies.