Airlines compute the weight of outbound flights using either standard average we

Question

Airlines compute the weight of outbound flights using either standard average weights provided by the Federal Aviation Administration (FAA) or weights obtained from their own sample surveys. The FAA standard average weight for a passengers carry-on items (personal items plue carry on bags) is 16 pounds. Many airline companies have begun implementing fees for checked bags. Economic theory predicts that passengers will respond to the increase in the price of a checked bag by substituting carry on bags for checked bags. As a result, the mean weight of a passenger's carry on items is expected to increase after the implementation of the checked bag fee.

The hypothesis test is __________(an upper tail, a lower tail, a two tailed) test. The test statistic follows a ________(t, standard normal, binomial) distribution. The value of the test statistic is _________(.19, 1.25, 1.07, 1.75). According to the critical value approach the rejection rule is to reject H0 if _____________. The p-value is _______(1.85, 1.95, .25, 1.23).

According to the critical value approach, the rejection rule is:

a. Reject Ho if t is greater than or equal to 2.388

b. Reject Ho if Z is greater than or equal to 1.645

c.  Reject Ho if t is less than or equal to -2.567 or t is greater than or equal to 2.567

d.  Reject Ho if is less than or equal to -2.388

The P-value is _________(.0256, .0279, .0514, 1.9495)

According to the critical value approach, the null hypothesis is ________(rejected, not rejected), because _____________ (1.95 is less than 2.388, .25 is less than 2.388, .0279 is greater than .01, 1.95 is less than 2.657) Using the p-value approach, the null hypothesis is ______(rejected, not rejected), because _______ (0279 is greater than .01, 0.0514 >.01, 1.95 is less than 2.388, 0.0256 is greater than .01. Therefore, you (can, cannot) conclude that the mean weight if the airline's passengers' carry-on items has increased after the implementation of the checked-bag fee.

Explanation / Answer

The hypothesis test is an upper tail test. The test statistic follows a t- distribution. The value of the test statistic is 1.95. According to the critical value approach the rejection rule is to reject H0 if t > 2.38. The p-value is 0.0279.

According to the critical value approach, the rejection rule is:

a. Reject Ho if t is greater than or equal to 2.388

The P-value is 0.0279.

According to the critical value approach, the null hypothesis is not rejected because 1.95 is less than 2.388. Using the p-value approach, the null hypothesis is not rejected, because 0.279 is greater than 0.01. Therefore, you cannot conclude that the mean weight if the airline's passengers' carry-on items has increased after the implementation of the checked-bag fee.

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