How do the fares for airlines that directly compete compare?The accompanying table contains roundtrip fares for nonstop travel from a particular city to 10 different destinations in the same country on two airlines that a frequent flyer collected.In the formula for the test statistic, is the sample mean difference, is the hypothesized mean difference, is the standard deviation of the sample differences, and n is the number of matched pairs. Airline A Fare($) 744 687 972 1122 690 953 980 749 1133 1197 Airline B Fare($) 747 690 975 1125 693 956 983 779 1136 1200 At the 0.01 level of significance, What is the test statistic?
Question
How do the fares for airlines that directly compete compare?The accompanying table contains roundtrip fares for nonstop travel from a particular city to 10 different destinations in the same country on two airlines that a frequent flyer collected.In the formula for the test statistic, is the sample mean difference, is the hypothesized mean difference, is the standard deviation of the sample differences, and n is the number of matched pairs. Airline A Fare() 747 690 975 1125 693 956 983 779 1136 1200 At the 0.01 level of significance, What is the test statistic?
Solution
To calculate the test statistic, we first need to find the differences in fares between the two airlines for each destination, then calculate the mean and standard deviation of these differences.
Here are the differences for each destination:
Airline A - Airline B: -3, -3, -3, -3, -3, -3, -3, -30, -3, -3
The mean (d-bar) of these differences is -5.6.
The standard deviation (s) of these differences can be calculated using the formula for standard deviation, which is the square root of the variance. The variance is the average of the squared differences from the mean. In this case, the variance is 60.24, so the standard deviation is approximately 7.76.
The hypothesized mean difference (μ0) is 0, since we're testing whether the fares are the same on average.
The number of matched pairs (n) is 10, since there are 10 destinations.
The formula for the test statistic is (d-bar - μ0) / (s / sqrt(n)). Plugging in the numbers we have:
(-5.6 - 0) / (7.76 / sqrt(10)) = -2.27
So, the test statistic is approximately -2.27.
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How do the fares for airlines that directly compete compare?The accompanying table contains roundtrip fares for nonstop travel from a particular city to 10 different destinations in the same country on two airlines that a frequent flyer collected. The test is a two-tailed test. In the formula for the test statistic,D is the sample mean difference,up is the hypothesized mean difference,Sp is the standard deviation of the sample differences,and n is the number of matched pairs. At the 0.10 level of significance, What is the test statistic? Airline A Fare (S) 712 701 1004 1137 647 985 947 707 1152 1189 Airline B Fare(S) 715 704 1007 1140 650 988 950 710 1178 1192
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
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.
What is the p-value for the test statistic? The p-value is 0.047. (Round to three decimal places as needed.) What is the correct conclusion at the 0.10 level of significance? OA.Reject Ho.There is sufficient evidence to conclude that there is a difference between the mean roundtrip fares between Airline A and Airline B. B.Do not reject Ho.There is sufficient evidence to conclude that there is a difference between the mean roundtrip fares between Airline A and Airline B. C.Reject Ho.There is insufficient evidence to conclude that there is a difference between the mean roundtrip fares between Airline A and Airline B. OD.Do not reject Ho.There is insufficient evidence to conclude that there is a difference between the mean roundtrip fares between Airline A and Airline B.
The price of an airplane ticket for a return trip is $600. The airline company attracts an average 500 daily bookings at this price. It has been observed that there is a linear relationship between the price of the return trip and the number of bookings. This is such that for every $50 decrease in price, there is an additional 100 bookings. Form a linear equation that relates the number of bookings with the price of the ticket.
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