Allegiant Airlines charges a mean base fare of $88. In addition, the airline cha

Question

Allegiant Airlines charges a mean base fare of $88. In addition, the airline charges for making a reservation on its website, checking bags, and inflight beverages. These additional charges average $36 per passenger. Suppose a random sample of 50 passengers is taken to determine the total cost of their flight on Allegiant Airlines. The population standard deviation of total flight cost is known to be $39. a. What is the population mean cost per fight? $ b. What is the probability the sample mean will be within $10 of the population mean cost per flight (to 4 decimals)? c. What is the probability the sample mean will be within $5 of the population mean cost per fight (to 4 decimals)?

Explanation / Answer

A. 88+36 = $ 124

B. z = ( 114 - ) / (÷) = -1.8148
z = ( 134 - ) / (÷) = 1.8148
P (114 < x < 134) = P(-1.8148<z<1.8148)
=0.9304

C. z = ( 119 - ) / (÷) = -0.9074
z = ( 129 - ) / (÷) = 0.9074
P (119 < x < 129) =P(-0.9074<z<0.9074)=0.6358

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