Adam also believes that airlines systematically increase the price of a roundtrip fare from Sydney to Paris on Thursdays. He collects a sample of data by checking the websites of airlines for flights that depart on a Tuesday (Pop. 1) and on a Thursday (Pop. 2). Test his claim at the 5% level of significance. Use worksheet C of the Excel Exam data file to answer this question.
Question
Adam also believes that airlines systematically increase the price of a roundtrip fare from Sydney to Paris on Thursdays. He collects a sample of data by checking the websites of airlines for flights that depart on a Tuesday (Pop. 1) and on a Thursday (Pop. 2). Test his claim at the 5% level of significance. Use worksheet C of the Excel Exam data file to answer this question.
Solution
To test Adam's claim, we would need to perform a hypothesis test comparing the means of two populations (Tuesday flights and Thursday flights). Here are the steps:
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State the Hypotheses: The null hypothesis (H0) would be that there is no difference in the mean price of flights on Tuesdays and Thursdays. The alternative hypothesis (H1) would be that the mean price of flights on Thursdays is higher than on Tuesdays.
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Choose an Alpha Level: In this case, the problem states to test the claim at the 5% level of significance, so α = 0.05.
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Calculate the Test Statistic: This would be done using the data from the Excel file. You would need to calculate the mean and standard deviation of the prices for both Tuesday and Thursday flights, and then use these values to calculate the test statistic. This could be done using a t-test if the sample size is small and the population standard deviations are unknown, or a z-test if the sample sizes are large.
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Determine the Critical Value and Rejection Region: Using a t-table or z-table (depending on the test used in step 3), find the critical value that corresponds to α = 0.05. The rejection region would be any test statistic that is greater than this critical value.
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Make a Decision: If the test statistic falls in the rejection region, reject the null hypothesis in favor of the alternative. This would support Adam's claim that airlines systematically increase the price of a roundtrip fare from Sydney to Paris on Thursdays. If the test statistic does not fall in the rejection region, do not reject the null hypothesis. This would suggest that there is not enough evidence to support Adam's claim.
Remember, failing to reject the null hypothesis does not prove it true, it simply suggests that there is not enough evidence to support the alternative hypothesis.
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0:21:03Question 1Incomplete answerMarked out of 20.00Flag questionTipsQuestion 3 - Adam's caseAdam also believes that airlines systematically increase the price of a roundtrip fare from Sydney to Paris on Thursdays. He collects a sample of data by checking the websites of airlines for flights that depart on a Tuesday (Pop. 1) and on a Thursday (Pop. 2). Test his claim at the 5% level of significance. Use worksheet C of the Excel Exam data file to answer this question.The hypothesis to be tested isBlank 1 Question 1The decision rule at the 5% level of significance isBlank 2 Question 1The p-value for this test isBlank 3 Question 1The calculated test statistic isBlank 4 Question 1
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