Central Airlines claims that the median price of a round-trip ticket from Chicag
ID: 3267872 • Letter: C
Question
Central Airlines claims that the median price of a round-trip ticket from Chicago to Jackson Hole, Wyoming, is $500. This claim is being challenged by the Association of Travel Agents, who believe the median price is less than $500. A random sample of 416 round-trip tickets from Chicago to Jackson Hole revealed 178 tickets were below $500. None of the tickets were exactly $500. Let = 0.05.
What is your decision regarding H0? Interpret. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and the final answer to 2 decimal places.)
a. State the null and alternate hypotheses.Explanation / Answer
b) mean =np=416*0.5=208
std deviation =10.198
therefore test stat z=(X-mean)/std deviation =(178-208)/10.198= 2.94
as test stat is less then -1.65; reject Ho. MEdian is less then 500
H0: Median 500 $ H1: Median <500 $