Question

Expedia would like to test the hypothesis that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris. The following data summarizes the sample statistics for roundtrip flights originating in both cities. Assume that the population variances are equal. Originating City Philadelphia Paris $1,240 $1,060 Sample mean Sample size Sample standard 15 19 deviation $270 $240 If Population 1 is defined as flights originating in Philadelphia and Population 2 is defined as flights originating in Paris, the test statistic for this hypothesis test would be t2.055 tx= 0.602 t 2.0585 t0234

Answer 1

For unknown sigma & n <30 we use t distribution.

In a 2 sample t distribution for an equal population variances

Test statistic t= (x1-x2)/sp × sqrt ((1/n1 + 1/n2))