A Bloomberg BusinessWeek subscriber study asked, \"In the past 12 months, when t

Question

A Bloomberg BusinessWeek subscriber study asked, "In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often?" A second question asked if the type of airline ticket purchased most often was for domestic or international travel. Sample data obtained are shown in the following table. Type of Flight Type of Ticket Domestic International First Class 26 23 Business Class 96 129 Economy Class 513 134 a. Using a .05 level of significance, is the type of ticket purchased independent of the type of flight? Use Table 12.4. H 0: H a: Compute the value of the 2 test statistic (to 2 decimals). 1.84 The p-value is . What is your conclusion? b. Discuss any dependence that exists between the type of ticket and type of flight.

Explanation / Answer

Ans:

Test statistic:

Chi square score=110.68

df=(3-1)*(2-1)=2

p-value=CHIDIST(110.68,2)=0.0000

As,p-value<0.001,we reject the null hypothesis and we can conclude that there is significant dependence that exists between the type of ticket and type of flight.

Observed freq(fo) Domestic international Total First class 26 23 49 Business class 96 129 225 Economy class 513 134 647 Total= 635 286 921 Expected freq.(fe) Domestic international Total First class 33.78 15.22 49 Business class 155.13 69.87 225 Economy class 446.09 200.91 647 Total= 635 286 921 Chi square=(fo-fe)^2/fe Domestic international Total First class 1.79 3.98 5.78 Business class 22.54 50.04 72.58 Economy class 10.04 22.29 32.32 Total= 34.37 76.31 110.68

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