Question

Researchers in the corporate office of an airline wonder if there is a significant difference between the cost of a flight on Priceline.com vs. the cost of the same flight on the airline's own website. A random sample of 8 flights were tracked on Priceline.com and the airline's website and the mean difference in price (Priceline.com - Airline Site) was $-12.43 with a standard deviation of $13.9052. Create a 99% confidence interval for the true average difference in costs between the vendors.

Question 9 options:

	1) (-15.9295, -8.9305)
	2) (-29.6343, 4.7743)
	3) (-17.3462, -7.5138)
	4) (-28.9259, 4.0659)
	5) (29.6343, 4.7743)

Answer 1

Solution: Given that . point estimate = sample mean =-12:43 Sample standard deviation S: 13.9052 Sample size 7-8 Degree of focedom df-n-1 = 8-1 df = 7 At 99% confidence interval d=-0.99 d-ool 012 - 001/2 olla : 0.005 tarzide - too05,7 63.4995 Maagin of expor (Poom coitical value table] Es tdla,dp * ñ = 3:4995 * 13.9052 -17.204349 the The 991% confidence inteoval estimate of population mean is :

- ECMS Šte .. 7-12.43 - 17.204349 CM 5-12:43+17:204349 ²- 29.634349 < M¿ 4.774349 Thedefode, The 9911. confidence interval is (-29.6343, 4.7743) option @ is correct i .