Question

In: Statistics and Probability

an air traveler pays a mean of 275.00 for baggage and changing ticket fees.Suppose that the...

an air traveler pays a mean of 275.00 for baggage and changing ticket fees.Suppose that the distribution of airline baggage and changing ticket fees has a standard deviation of 175.05. You randomly select 49 air travelers and compute the mean fee they pay to be $310. At a=0.04. can you claim the mean amount of fees has not changed?

state the null and alternative hypothesis,compute p value, reject or not.

Solutions

Expert Solution

Solution :

It is given that an air traveler pays a mean of $275.00 for baggage and changing ticket fees. It is supposed that the distribution of airline baggage and changing ticket fees has a standard deviation of 175.05. You randomly select 49 air travelers and compute the mean fee they pay to be $310.

At = 0.04 , we have to test whether the Mean amount of fees has changed !!

To state the appropiate null and alternative hypothesis :

Since , here , the Sample Size = 49 > 30 , we can use the 1 - Sample Z Test to test the above hypothesis.

Thus , The appropiate test statistic is given as ,

From the data given , we have the following information :

Thus , the value of the test statistic is given as ,

To find the p - value of the test :

The p - value of the test is given as ,

To conclude from the test hypothesis test using = 0.04 level of significance :

Conclusion : Since clearly , the p - value is greater than the level of significance for the above test , thus we Accept the Null Hypothesis (H0) at = 4% level of significance and conclude on the basis of the given data that the Mean amount of fees has not changed at 4% level of significance.................................................(Ans)

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