Question

A travel analyst claims that the mean price of a round trip flight from New York City to Los Angeles is less than $507. In a random sample of 28 round trip flights from New York City to Los Angeles, the mean price is $502 with a standard deviation of $111. At α = 0.10, is there enough evidence to support the travel analyst’s claim?

Identify the null and alternative hypotheses and label the claim.

State whether to use a left-tailed test, right-tailed test, or two-tailed test.

Identify the level of significance and find degrees of freedom.

Identify the critical value(s) and the rejection region on the graph.

Find the standardized test statistic.

Find the P-value.

Make a decision and interpret the decision

Answer 1

Given That na 28 l=507 2 =502 T=1112=0.1 ) Ho: ll = 507 Hi e li < 501 Claim price of a rand trip flight from New York City to Los Angeles is less than $501 The mean 20.3 (2) Left tailed test 3) significance level Degree of freedom 4. Critical value depan anri: 28-1-21) t = to, df = to,1,21 =/- 1.314 (from t table) 5) - Tall olso -1.314 -5 - 502-507 10.1128 --01238 11.25 t = -0.238 “) p-vole olla, 2-0-238] – P[1,77023] using accel 7) Decision T.DIST.RT (0.235,21) = 0.4068 P: 0-4068 P > a=0.1 fai to Reject Ho There is imuffient evidence to support the Claim e 9507