Allegiant Airlines charges a mean base fare of $89. In addition, the airline cha

Question

Allegiant Airlines charges a mean base fare of $89. In addition, the airline charges for making a reservation on its website, checking bags, and inflight beverages. These additional charges average $39 per passenger (Bloomberg Businessweek, October 8-14, 2012). Suppose a random sample of 60 passengers is taken to determine the total cost of their flight on Allegiant Airlines. The population standard deviation of total flight cost is known to be $40. a. What is the population mean cost per flight? b. What is the probability the sample mean will be within $10 of the population mean cost per flight? c. What is the probability the sample mean will be within $5 of the population mean cost per flight?

Explanation / Answer

A. 89+39 = $ 128

B. z = ( 118 - ) / (÷) = -1.9365
z = ( 138 - ) / (÷) = 1.9365
P (118 < x < 138) = P (-1.9365 < z < 1.9365) = 0.9472

C. z = ( 123 - ) / (÷) = -0.9682
z = ( 133 - ) / (÷) = 0.9682
P (123 < x < 133) = P (-0.9682 < z < 0.9682) = 0.667

Answer

TY!

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