Many airline companies have begun implementing fees for checked bags. Economic t

Question

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 Suppose that a particular airline's passengers had a mean weight for their carry-on items of 16 pounds, the FAA standard average weight, before implementation of the checked-bag fee. The airline conducts a hypothesis test to determine whether the current mean weight of its passengers' carry-on items is more than 16 pounds. It selects a random sample of 67 passengers and weighs their carry-on items. The sample mean is x = 17.1 pounds, and the sample standard deviation is s = 6.0 pounds. The airline uses a significance level of alpha =.05 to conduct its hypothesis test. The hypothesis test is test. The test statistic follows a distribution. The value of the test statistic is. Use the Distributions tool to develop the critical value rejection rule. According to the critical value approach, the rejection rule is: The p-value is. Using the critical value approach, the null hypothesis is, because. Using the p-value approach, the null hypothesis is, because. Therefore, you conclude that the mean weight of the airline's passengers' carry-on items has increased after the implementation of the checked-bag fee.

Explanation / Answer

The test statistic is z = (Sample Mean - Population Mean) / (Sample SD / n) as sample size is more than 30, otherwise we would have used t - statistic.

here sample mean = 17.1, population mean = 16, St dev = 6.0 and n = 67

So z = (17.1-16) / 6/67 = 1.50. Here hypothesis is accepted as it is less than 1.96.

For more than 30 sample size, the value of t and z coincide and it is 1.96. As per option given, the hypothesis is rejected if t < -1.997 and t> 1.997.

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