Expedia would like to test the hypothesis that the average roundtrip airfare bet

Question

Expedia would like to test the hypothesis that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris. The following data summarizes the sample statistics for roundtrip flights originating in both cities. Assume that the population variances are equal. Originating City Philadelphia Paris Sample mean $1,240 $1,060 Sample size 15 19 Sample standard deviation $270 $240 If Population 1 is defined as flights originating in Philadelphia and Population 2 is defined as flights originating in Paris, which one of the following statements is true? a. Because the 90% confidence interval includes zero, Expedia cannot conclude that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris. b. Because the 90% confidence interval does not include zero, Expedia cannot conclude that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris. c. Because the 90% confidence interval includes 0, Expedia can conclude that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris. d. Because the 90% confidence interval does not include 0, Expedia can conclude that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris.

Explanation / Answer

Following is the output of independent sample t test:

The 90% confidence interval is (28.881, 331.119).

Following option is correct:

d. Because the 90% confidence interval does not include 0, Expedia can conclude that the average roundtrip airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia when compared to a flight originating in Paris.

Hypothesis Test: Independent Groups (t-test, unequal variance) X1 X2 1240 1060 mean 270 240 std. dev. 15 19 n 28 df 180.000 difference (X1 - X2) 88.835 standard error of difference 0 hypothesized difference 2.03 t .0524 p-value (two-tailed) 28.881 confidence interval 90.% lower 331.119 confidence interval 90.% upper 151.119 margin of error

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