Researchers in the corporate office of an airline wonder if there is a significa

Question

Researchers in the corporate office of an airline wonder if there is a significant difference between the cost of a flight on Priceline.com vs. the airline's own website. A random sample of 24 flights were tracked on Priceline and the airline's website and the 90% confidence interval for the mean difference in price (Priceline - Airline Site) was (-21.44, 68.13).

i) Which of the following is the appropriate conclusion?

ii) What if the interval is (21.44, 68.13)?

iii) What if the interval is (-68.13, -21.44)?

A) There is no significant difference between the average price for the booking options

B) We are 90% confident that the average difference in price is negative, with the higher price coming from Priceline.

C) We are 90% confident that the average difference in price is positive, with the higher price coming from the Airline sites

Explanation / Answer

1) Answer is Option A)

A) There is no significant difference between the average price for the booking options

2) difference is significant and priceline prices are more

3) difference is significant and priceline prices are less

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