Question: An airline operating between London and Aberdeen knows that a large part of its customer base represents business executives. The airline is considering offering a limousine service to/from the airport to be included in the airline ticket price, which would have to increase as a result. A survey has recently been completed on a number of flights of ten executive passengers asking if they (or their company) would be willing to pay 10 per cent extra for their flight if this service was included. The responses were:
Estimate p as the total number responding yes/total number surveyed.
Determine whether these responses follow the Binomial distribution. Why do you think the airline might be interested in whether responses follow the Binomial distribution?