For a recent year the mean fare to fly from Charlotte, NC, to Seattle, WA, on a

Question

For a recent year the mean fare to fly from Charlotte, NC, to Seattle, WA, on a was $267. A random sample of round-trip discount fares on this route last month gives:

$321   $286       $290       $330       $310       $250       $270  
$280   $299       $265       $291       $275       $281

At the .05 significance level, can we conclude that the mean fare has increased?

State the null and alternate hypotheses

Select

Select the test statistic

Formulate the decision rule:

What is the value of the test statistic?

Make your decision.  

Interpret your decision in terms of the situation.

Determine and interpret the p-value.

Explanation / Answer

First inter the given data set in minitab

Using minitab commands:

The command is Stat>>>Basic Statistics >>1 sample t...

Click on "Samples in columns"

select the column name in which your data is present.

then click on Perform hypothesis test enter hypothesis mean (267 )

then click on Option select level of confidence = 1 - alpha = (1 - 0.05)*100 = 95.0

Alternative " greater than"

Click on Ok

again click on OK

Then we get the following output

One-Sample T: Fares

Test of mu = 267 vs > 267

95% Lower
Variable N Mean StDev SE Mean Bound T P
Fares 13 288.31 22.46 6.23 277.21 3.42 0.003

From the above output the test statistic is 3.42

Decision rule: 1) If p-value < level of significance (alpha) then we reject null hypothesis

2) If p-value > level of significance (alpha) then we fail to reject null hypothesis.

Here p value = 0.003<0.05 so we used first rule.

That is we reject null hypothesis .

Conclusion: At 5% level of significance there are sufficient evidence to say that the  mean fare has increased.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.