8-23. Air Transport World recently named the Dutch airline KLM "Airline of the Year." One measure of the airline's excellent management is its research effort in devel- oping new routes and improving service on existing routes. The airline wanted to test the profitability of a certain transatlantic flight route and offered daily flights from Europe to the United States over a period of 6 weeks on the new proposed route. Then, over a period of 9 weeks, daily flights were offered from Europe to an alternative airport in the United States. Weekly profitability data for the two samples were col- lected, under the assumption that these may be viewed as independent random samples of weekly profits from the two populations (one population is flights to the proposed airport, and the other population is flights to an alternative airport). Data are as follows. For the proposed route, x $96,540 per week and s $12,522. For the alternative route, $85,991 and s $19,548. Test the hypothesis that the pro- posed route is more profitable than the alternative route. Use a significance level of

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8-23. Air Transport World recently named the Dutch airline KLM “Airline of the
Year." One measure of the airline's excellent management is its research effort in devel-
oping new routes and improving service on existing routes. The airline wanted to test
the profitability of a certain transatlantic flight route and offered daily flights from
Europe to the United States over a period of 6 weeks on the new proposed route.
Then, over a period of 9 weeks, daily flights were offered from Europe to an alternative
airport in the United States. Weekly profitability data for the two samples were col-
lected, under the assumption that these may be viewed as independent random
samples of weekly profits from the two populations (one population is flights to the
proposed airport, and the other population is flights to an alternative airport). Data
are as follows. For the proposed route, r = $96,540 per week and s = $12,522. For
the alternative route, $85,991 and s $19,548. Test the hypothesis that the pro-
posed route is more profitable than the alternative route. Use a significance level of
your choice.
Transcribed Image Text:8-23. Air Transport World recently named the Dutch airline KLM “Airline of the Year." One measure of the airline's excellent management is its research effort in devel- oping new routes and improving service on existing routes. The airline wanted to test the profitability of a certain transatlantic flight route and offered daily flights from Europe to the United States over a period of 6 weeks on the new proposed route. Then, over a period of 9 weeks, daily flights were offered from Europe to an alternative airport in the United States. Weekly profitability data for the two samples were col- lected, under the assumption that these may be viewed as independent random samples of weekly profits from the two populations (one population is flights to the proposed airport, and the other population is flights to an alternative airport). Data are as follows. For the proposed route, r = $96,540 per week and s = $12,522. For the alternative route, $85,991 and s $19,548. Test the hypothesis that the pro- posed route is more profitable than the alternative route. Use a significance level of your choice.
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