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rovider ----
No, it won't go up 20%. I am a pilot of *real* airplanes as well as an instructor on same. At the 5000 foot altitude we were discussing earlier, the stall will be less than 10 % higher. AT 7000' it will be 14%. It's a function of the *square root* of density decrease, not the density number itself. See this page:
Propeller pitch is calculated using the pitch times RPM to get a theoretical forward speed, and is adjusted for an assumed slip during cruise flight. Optimal AOA of the prop is about 2=B0 in cruise, and figuring the tangent of that at .034 we get an approximate 3.4% of slip. Model props are small and less efficient and might slip twice that. Longer props are more efficient and have been known to have zero slip; my full-scale Jodel did that before I trimmed the prop to get higher RPM and better takeoff. A propeller's airfoil will generate lift into the small negative AOAs, making that possible. It's usually a sign of a prop that's too long. Some people don't believe that lift can be generated at negative AOAs; they should scroll down to the AOA vs coefficient of lift graph here:
A propeller is an airfoil, and suffers the same altitude losses that the wing's airfoil does. If the thin air causes a loss of thrust, the wing loses it, too. But drag decreases too: it's a function of the formula 1/2MV[squared]. As mass decreases, so does drag. Propeller airplanes can fly at altitudes far beyond any concern of the modeler.
Dan