A Bloomberg BusinessWeek subscriber study asked, \"In the past 12 months, when t

Question

A Bloomberg BusinessWeek subscriber study asked, "In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often?" A second question asked if the type of airline ticket purchased most often was for domestic or international travel. Sample data obtained are shown in the following table.

a. Using a .05 level of significance, is the type of ticket purchased independent of the type of flight? Use Table 12.4.

H0: __________

A) Type of ticket purchased is independent of the type of flight

B) Type of ticket purchased is NOT independent of the type of flight

Ha: ______________

A) Type of ticket purchased is independent of the type of flight

B) Type of ticket purchased is NOT independent of the type of flight

What is your conclusion?

b. Discuss any dependence that exists between the type of ticket and type of flight.

Type of Flight Type of Ticket Domestic International First Class 22 27 Business Class 122 91 Economy Class 138 513 Select less than.005 between.005 and .01 between 01 and.025 between .025 and .05 between .05 and .10 greater than.10

Explanation / Answer

H0: A) Type of ticket purchased is independent of the type of flight

Ha: B) Type of ticket purchased is NOT independent of the type of flight

applying chi square test on above:

test statistic =102.62

p value : less than 0.05

conclude that is ....... depends upon..................

b)

first option is correct

Observed O Domestic International Total first class 22 27 49 business class 122 91 213 Economy class 138 513 651 Total 282 631 913 Expected E=rowtotal*column total/grand total Domestic International Total first class 15.135 33.865 49 business class 65.790 147.210 213 Economy class 201.076 449.924 651 Total 282 631 913 chi square =(O-E)^2/E Domestic International Total first class 3.1142 1.3918 4.506 business class 48.0257 21.4632 69.489 Economy class 19.7862 8.8427 28.629 Total 70.926 31.698 102.6237

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