Pressures of supply and demand act directly on the prices for an airline ticket.

Question

Pressures of supply and demand act directly on the prices for an airline ticket. As the seats available on the plane begin to fill, airlines raise the price. If seats on a flight do not sell well, an airline may discount the tickets or even cancel the flight. A study was undertaken to determine if there is a difference in the mean cost of an airline ticket purchased 90 days in advance of a scheduled flight compared with a ticket purchased only 14 days in advance. Data were collected on the cost of a one-way ticket from London's Heathrow Airport to a variety of destinations in Europe. The lowest published ticket prices of one-way flights from Heathrow to various destinations in Europe was recorded for each scheduled flight 90 days in advance and then again 14 days in advance. The data are recorded in DirectFlightCosts.xlsx.

link to file

https://drive.google.com/file/d/0B4XQhcmrtmtPUXk1cmNPbkxTZmc/view?usp=sharing

Perform a hypothesis test to determine if there is a difference in the mean cost of the nonstop flights when tickets are purchased 14 days in advance compared to 90 days in advance. Use a level of significance of =0.10{"version":"1.1","math":"lpha = 0.10"}. For the next four questions, do 14 Days - 90 Days for the analysis.

What is the correct hypothesis test for this situation?

Question 24 options:

Independent samples test

One sample z-test

One sample t-test

Dependent samples test

Calculate the test statistic.

c)Give the P-value.

d)

Which of the following best expresses the conclusion of this test? Use a level of significance of =0.10{"version":"1.1","math":"lpha=0.10"}.

Question 27 options:

There is insufficient evidence to conclude that there is a difference in the mean cost of tickets purchased 14 days in advance compared to 90 days in advance.

There is sufficient evidence to conclude that there is a difference in the mean cost of tickets purchased 14 days in advance compared to 90 days in advance.

There is sufficient evidence to conclude that there is no difference in the mean cost of tickets purchased 14 days in advance compared to 90 days in advance.

There is insufficient evidence to conclude that there is no difference in the mean cost of tickets purchased 14 days in advance compared to 90 days in advance.

Origin Destination FourteenDays NinetyDays Heathrow Airport Adnan Menderes Airport 202.09 234.19 Heathrow Airport Alicante Airport 361.69 326.39 Heathrow Airport Amsterdam Airport Schiphol 114.29 132.59 Heathrow Airport Antalya Airport 267.09 270.19 Heathrow Airport Atatürk International Airport 207.09 205.09 Heathrow Airport Athens International Airport 185.29 129.49 Heathrow Airport Barajas Airport 931.99 947.29 Heathrow Airport Barcelona El Prat Airport 156.99 121.29 Heathrow Airport Bari Airport 493.99 667.69 Heathrow Airport Belfast International Airport 93.69 95.39 Heathrow Airport Bergen-Flesland Airport 182.29 184.59 Heathrow Airport Berlin Schönefeld Airport 303.69 Heathrow Airport Berlin Tegel Airport 142.69 156.59 Heathrow Airport Bilbao Airport 251.79 194.49 Heathrow Airport Blagnac Airport 163.29 129.59 Heathrow Airport Bologna Airport 168.29 139.59 Heathrow Airport Bordeaux - Mérignac Airport 509.69 318.09 Heathrow Airport Boryspil International Airport 227.59 1242.09 Heathrow Airport Brussels Airport 122.29 113.99 Heathrow Airport Budapest Liszt Ferenc International Airport 283.29 146.59 Heathrow Airport Cagliari-Elmas Airport 597.59 378.09 Heathrow Airport Catania-Fontanarossa Airport 330.99 306.39 Heathrow Airport Cologne Bonn Airport 273.59 226.99 Heathrow Airport Copenhagen Airport 121.79 114.59 Heathrow Airport Dalaman Airport 267.09 270.19 Heathrow Airport Domodedovo International Airport 781.09 793.79 Heathrow Airport Dublin Airport 123.69 87.49 Heathrow Airport Düsseldorf International Airport 146.89 104.19 Heathrow Airport Edinburgh Airport 123.49 86.39 Heathrow Airport Esenboga Airport 233.09 265.19 Heathrow Airport EuroAirport Basel-Mulhouse-Freiburg 106.29 107.59 Heathrow Airport Faro Airport 251.79 194.49 Heathrow Airport Francisco de Sá Carneiro Airport 227.29 230.09 Heathrow Airport Frankfurt Airport 169.29 96.19 Heathrow Airport Frederic Chopin Airport 178.79 138.69 Heathrow Airport Fuerteventura Airport 263.09 Heathrow Airport Galileo Galilei Airport 254.29 192.59 Heathrow Airport Geneva Cointrin International Airport 189.29 106.59 Heathrow Airport Glasgow International Airport 148.29 106.59 Heathrow Airport Gothenburg-Landvetter Airport 131.29 109.59 Heathrow Airport Gran Canaria Airport 196.39 183.09 Heathrow Airport Hamburg Airport 199.39 123.69 Heathrow Airport Helsinki-Vantaa Airport 254.29 143.59 Heathrow Airport Henri Coanda International Airport 224.79 199.69 Heathrow Airport Heraklion International Airport 284.69 184.59 Heathrow Airport Ibiza Airport 395.39 326.39 Heathrow Airport Langenhagen Airport 179.29 118.59 Heathrow Airport Lanzarote Airport 259.39 263.09 Heathrow Airport Larnaca International Airport 299.19 210.09 Heathrow Airport Leonardo da Vinci-Fiumicino Airport 168.29 170.59 Heathrow Airport Linate Airport 211.09 164.59 Heathrow Airport Lisbon Portela Airport 175.29 150.59 Heathrow Airport Liverpool John Lennon Airport Heathrow Airport Los Rodeos Airport 259.39 183.09 Heathrow Airport Lyon-Saint Exupéry Airport 215.29 129.59 Heathrow Airport Málaga Airport 285.79 194.49 Heathrow Airport Malpensa Airport 229.29 164.59 Heathrow Airport Malta International Airport 306.79 230.69 Heathrow Airport Manchester Airport 100.59 72.29 Heathrow Airport Marseille Provence Airport 186.79 188.69 Heathrow Airport Munich Airport 102.19 148.89 Heathrow Airport Naples Airport 396.19 298.49 Heathrow Airport Newcastle Airport 123.29 106.59 Heathrow Airport Nice Côte d'Azur Airport 215.29 136.59 Heathrow Airport Nuremberg Airport 362.79 250.29 Heathrow Airport Orio al Serio Airport 1158.69 1176.99 Heathrow Airport Oslo-Gardermoen Airport 171.29 131.59 Heathrow Airport Palermo Airport 453.19 281.09 Heathrow Airport Palma de Mallorca Airport 349.29 286.99 Heathrow Airport Paris-Charles de Gaulle Airport 151.29 114.59 Heathrow Airport Paris-Orly Airport 140.29 104.59 Heathrow Airport Pulkovo Airport 312.24 721.34 Heathrow Airport Rhodes International Airport 284.69 188.59 Heathrow Airport Riga International Airport 309.99 210.89 Heathrow Airport Ruzyne Airport 172.29 175.59 Heathrow Airport Sabiha Gökçen Airport 365.49 296.19 Heathrow Airport San Pablo Airport 285.79 330.49 Heathrow Airport Sheremetyevo International Airport 770.99 782.09 Heathrow Airport Stavanger-Sola Airport 334.49 121.59 Heathrow Airport Stockholm-Arlanda Airport 255.29 120.59 Heathrow Airport Stuttgart Airport 149.89 124.19 Heathrow Airport Tenerife South Airport 284.39 240.09 Heathrow Airport Thessaloniki International Airport, "Macedonia" 261.69 180.59 Heathrow Airport Trondheim-Værnes Airport 310.89 194.89 Heathrow Airport Turin Airport 350.69 354.69 Heathrow Airport Valencia Airport 251.79 194.49 Heathrow Airport Venice Marco Polo Airport 205.29 283.59 Heathrow Airport Vienna International Airport 174.29 128.59 Heathrow Airport Vnukovo International Airport 338.79 341.89 Heathrow Airport Zürich Airport 160.29 114.59

Explanation / Answer

Q24)

It is dependent sample test.

t =

p - value (two tailed) = 0.09568 < 0.10

here is sufficient evidence to conclude that there is a difference in the mean cost of tickets purchased 14 days in advance compared to 90 days in advance.

t-Test: Paired Two Sample for Means 90 days 14 days Mean 243.8457 268.4572 Variance 47444.99 30591.02 Observations 87 87 Pearson Correlation 0.780468 Hypothesized Mean Difference 0 df 86 t Stat -1.68463 P(T<=t) one-tail 0.047843 t Critical one-tail 1.662765 P(T<=t) two-tail 0.095685 t Critical two-tail 1.987934

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.