[Solution]Airline Performance Measures

Chapter 4 Questions Group 1 Gustavo Alvarado Question 1 Airline Performance Measures. On-time arrivals, lost baggage, and customer complaints are three measures that are typically used…

Chapter 4 Questions Group 1 Gustavo Alvarado
Question 1 Airline Performance Measures. On-time arrivals, lost baggage, and customer complaints are three measures that are typically used to measure the quality of service being offered by airlines. Suppose that the following values represent the on-time arrival percentage, amount of lost baggage, and customer complaints for 10 U.S. airlines.

Airline
On-Time Arrivals (%)
Mishandled Baggage per 1,000 Passengers
Customer Complaints per 1,000 Passengers

Virgin America
83.5
0.87
1.50

JetBlue
79.1
1.88
0.79

AirTran Airways
87.1
1.58
0.91

Delta Air Lines
86.5
2.10
0.73

Alaska Airlines
87.5
2.93
0.51

Frontier Airlines
77.9
2.22
1.05

Southwest Airlines
83.1
3.08
0.25

US Airways
85.9
2.14
1.74

American Airlines
76.9
2.92
1.80

United Airlines
77.4
3.87
4.24

Based on the data above, if you randomly choose a Delta Air Lines flight, what is the probability that this individual flight will have an on-time arrival?
If you randomly choose 1 of the 10 airlines for a follow-up study on airline quality ratings, what is the probability that you will choose an airline with less than two mishandled baggage reports per 1,000 passengers?
If you randomly choose 1 of the 10 airlines for a follow-up study on airline quality ratings, what is the probability that you will choose an airline with more than one customer complaint per 1,000 passengers?
What is the probability that a randomly selected AirTran Airways flight will not arrive on time?

 
Answers and explanations:
Part A
The probability that the Delta Airlines flight will have an on-time arrival is 0.865.
Explanation: The obtained probability is 0.865 which indicates that there is approximately 86.5% chances that the Delta Airlines flight will have an on-time arrival.
Part B
The probability that the chosen airline with less than two mishandles baggage reports per 1000 passengers is 0.3.
Explanation:  The obtained probability is 0.3 which indicates that there is approximately 30% chances that the chosen airline with less than two mishandles baggage reports per 1000 passengers.
Part C
The probability that the chosen airline with more than one customer complaint reports per 1000 passengers is 0.5.
Explanation: The obtained probability is 0.5 which indicates that there is approximately 50% chances that the chosen airline with more than one customer complaint reports per 1000 passengers.
 
Part D
The probability that the selected AirTran Airways flight will not arrive on-time is 0.129.
Explanation: The obtained probability is 0.5 which indicates that there is approximately 50% chances that the chosen airline with more than one customer complaint reports per 1000 passengers.
 
 
 

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