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Airlines compute the weight of outbound flights using either standard average we

ID: 3293451 • Letter: A

Question

Airlines compute the weight of outbound flights using either standard average weights provided by the Federal Avaiation Adminsitration (FAA) or weights obtained from their own sample surveys. The FAA standard average weight for a passengers carry on items (personal items plue carry on bags) is 16 pounds. 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 susbtituing carry on bags for checked abgs. AS a result, the mean weight of a passenger's carry on items is expected to increase after the implemention of the checked bag fee.

Fill in the blanks to the following paragraph. No work needs to be shown but use the appropriate answer choices if given.

The hypothesis test is __________(an upper tail, a lower tail, a two tailed) test. The test statistic follows a __________( t, standard normal, ) distribution. The value of the test statistic is ________(1.60, 1.04, 1.10, 0.20).

According to the critical value approach, the rejection rule is to reject H0 if: a) t less than or equal to -1.669. B) if t is greater than or equal to 1.669. C) if z is greater than or equal to 1.645. D) if t is less than or equal to -1.998 OR t is greater than or equal to 1.998.

The p-value is ___________(0.0548, 1.6000, 0.0573, 0.0340).

Using the critical value appraoch, the null hypothesis is _________(rejected, not rejected), because ________(1.60 < 1.669, 1.60 <1.998, 0.20 <1.669, 0.0573 > 0.05 ). Using the p-value apprach, the null hypotheses is __________(rejected, not rejected), because _________ (0.0573 > 0.05, 1.60 < 1.669, 0.0548 > 0.05, 0.0340 < 0.05). Therefore you _________(can or cannot ) concluce that the mean weight of the airlines passengers carry on items has increased after the implemention of the checked bag fee.

Explanation / Answer

The statistical software output for this problem is:

One sample T summary hypothesis test:
: Mean of population
H0 : = 16
HA : > 16

Hypothesis test results:

Hence,

The answers will be:

Upper tail

t

1.60

B) if t is greater than or equal to 1.669

0.0573

Not rejected

1.60 < 1.669

Not rejected

0.0573 > 0.05

cannot

Mean Sample Mean Std. Err. DF T-Stat P-value 16.9 0.5625 63 1.6 0.0573
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