Question

2. Listed below are the costs in dollars of flights from New York (JFK) to San Francisco (SFO) for different airlines. Use a 0.01 significance level to test the claim that flights scheduled one day in advance cost more than flights scheduled 30 days in advance. SCHEDULE US Air Virgin Delta United American Alaska Northwest 1 day in advance 456 614 628 1088 943 567 536 30 days in advance 244 260 264 264 278 318 280 a) CLAIM: (IN WORDS) ________________________________________________________________________________________________________ b) CLAIM: (IN EQUATION FORM) ________________________________________________________________________________________________________ c) DETERMINE THE HYPOTHESES H0: H1：________________________________________________________________________________________________________ d) DRAW THE DISTRIBUTION - LABEL THE CRITICAL VALUE(S)

e) CALCULATE THE TEST STATISTIC and include the test statistic on the graph above. ______________________________________________________________________________________________________ f) STATE YOUR CONCLUSION IN CONTEXT OF ________________________________________________________________________________________________________ g) STATE YOUR CONCLUSION IN CONTEXT OF THE CLAIM

Answer 1

Fair when flight is booked 1 day in advance:

Sample size, = 7

Mean, = 690.286

Standard deviation, = 232.964

Fair when flight is booked 30 days in advance:

Sample size, = 7

Mean, = 272.571

Standard deviation, = 23.344

As satndard deviation are very different we

a) Claim(in words) : That flights scheduled one day in advance cost more than flights scheduled 30 days in advance.

b) Claim(in equation) :

c) Null and alternative hypothesis:

d) At =0.01 and df = 7+7-2 = 12, one tailed critical value, = 2.681

e) Test statistic:

f) As t = 4.72 > 2.681, we reject the null hypothesis. There is enough evidence to claim that population mean ​ is greater than ​, at the 0.01 significance level.

g) There is enough evidence to claim that flights scheduled one day in advance cost more than flights scheduled 30 days in advance at 0.01 significance level.