It is reported in USA Today that the average flight cost nationwide is $405.84.

Question

It is reported in USA Today that the average flight cost nationwide is $405.84. You have never paid close to that amount and you want to perform a hypothesis test that the true average is actually greater than $405.84. The hypotheses for this situation are as follows: Null Hypothesis: u 405.84. You take a random sample of national flight cost information and perform a one sample mean hypothesis test. You observe a p-value of 0.0438. What is the appropriate conclusion? Conclude at the 5% level of significance. The true average flight cost is less than or equal to $405.84. We did not find enough evidence to say the true average flight cost is greater than $405.84. The true average flight cost is significantly less than $405.84. The true average flight cost is significantly greater than $405.84. The true average flight cost is significantly different from $405.84.

Explanation / Answer

Solution:-

The true average fight cost is significantly greater than $ 405.84.

Since the p value of the test (0.0438) is less than the significance level(0.05), hence we have to reject the null hypothesis.

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