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. Type of Flight Type of Ticket First Class Business Class Economy Class Domestic 27 93 516 International 121 139 a. ?Using a.05 level of significance, is the type of ticket purchased independent of the type of flight? Ho: - Select your answer Ha:Select your answer Compute the value of the ?-test statistic (to 2 decimals). The p-value is Select What is your conclusion? Select your answer- b. Discuss any dependence that exists between the type of ticket and type of flight. -Select your answer

Explanation / Answer

a)
H0: Ticket purchased and type of flight are independent
Ha: Ticket purchased and type of flight are not independent

b)

?2=?(Oi?Ei)^2/Ei

we calculate the Ei = (row total)*(col total)/sample size

test statistic, chi-square = 99.44

df = (2-1)*(3-1) = 2

p-value = 0.0000 (< 0.00001)

Reject null hypothesis

b. type of ticket and type of flight are not independent

Observed Domestic International total First Class 27 22 49 Business Class 93 121 214 Economy 516 139 655 Total 636 282 918 Expected Domestic International First Class 33.948 15.052 Business Class 148.261 65.739 Economy 453.791 201.209

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