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During 2008, U.S. general aviation pilots had 1.20 fatal crashes per 100,000 flying hours. Harriet Arnold is president of Arnold’s Flying Service, a company that operates a total of 50 sightseeing planes based in 20 regions of the United States. Altogether, the planes in this fleet are in the air about 40,000 hours per year. Ever since a fatal crash last year involving one of the company’s planes that took off under questionable weather conditions, the company has been getting close scrutinyfrom both government safety officials and the national media. Harriet believes her planes are just as safe as anyone else’s, but is concerned that even one more fatal accident within the coming year might be too much for the now-struggling company to overcome. Assuming an exponential distribution for
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Introduction to Business Statistics
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