A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.CurrentPreviousYearYear345315526463420450216206285275405432635585710650605545517547570508610580(a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.Ho: Hg2 0H: Hg< 0O Ho: Hg=0H: Hg = 0O Ho: Ha = 0H: H > 0O Ho: H = 0H: Ho#0O Fo: Hd < 0H: Hg = 0Calculate the test statistic. (Use current year airfare - previous year airfare. Round your answer to three decimal places.)Calculate the p-value. (Round your answer to four decimal places.)p-value = (a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.O Ho: Hgz0H: Hg< 0O Ho: H =0H: H = 0O Ho: Hg = 0H3: H > 0O Ho: Hg = 0O Ho: Hg < 0Hai Hd = 0Calculate the test statistic. (Use current year airfare - previous year airfare. Round your answer to three decimal places.)Calculate the p-value. (Round your answer to four decimal places.)p-value =Using a 0.05 level of significance, what is your conclusion?O Do not reject H. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.O Do not reject H.. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.O Reject H. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.O Reject Ho. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.(b) What is the sample mean domestic airfare (in dollars) for business travel for each year?current$previous(c) What is the percentage change in mean airfare for the one-year period?Percentage change is given as ((x, - x,)/x,)*100 where x, is in the initial value (in this case, the previous year). (Round your answer to one decimal place, do not include the % symbol in your answer.)%

Name: A travel association reported the domestic airfare (in dollars) for b
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Description: A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.CurrentPreviousYearYear3453155264634204

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MATLAB: An Introduction with Applications

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ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.
Current
Previous
Year
Year
345
315
526
463
420
450
216
206
285
275
405
432
635
585
710
650
605
545
517
547
570
508
610
580
(a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.
Ho: Hg2 0
H: Hg< 0
O Ho: Hg=0
H: Hg = 0
O Ho: Ha = 0
H: H > 0
O Ho: H = 0
H: Ho#0
O Fo: Hd < 0
H: Hg = 0
Calculate the test statistic. (Use current year airfare - previous year airfare. Round your answer to three decimal places.)
Calculate the p-value. (Round your answer to four decimal places.)
p-value =

(a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.
O Ho: Hgz0
H: Hg< 0
O Ho: H =0
H: H = 0
O Ho: Hg = 0
H3: H > 0
O Ho: Hg = 0
O Ho: Hg < 0
Hai Hd = 0
Calculate the test statistic. (Use current year airfare - previous year airfare. Round your answer to three decimal places.)
Calculate the p-value. (Round your answer to four decimal places.)
p-value =
Using a 0.05 level of significance, what is your conclusion?
O Do not reject H. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.
O Do not reject H.. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.
O Reject H. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.
O Reject Ho. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.
(b) What is the sample mean domestic airfare (in dollars) for business travel for each year?
current
$
previous
(c) What is the percentage change in mean airfare for the one-year period?
Percentage change is given as ((x, - x,)/x,)*100 where x, is in the initial value (in this case, the previous year). (Round your answer to one decimal place, do not include the % symbol in your answer.)
%

Expert Solution

Step 1

a)
Given data of current year and previous year domestic airfare and we calculated the difference between them (d) as shown below
$\begin{matrix} C u r r e n t y e a r & P r e v i o u s y e a r & d (C u r r e n t y e a r - p r e v i o u s y e a) \\ 345 & 315 & 30 \\ 526 & 463 & 63 \\ 420 & 450 & - 30 \\ 216 & 206 & 10 \\ 285 & 275 & 10 \\ 405 & 432 & - 27 \\ 635 & 585 & 50 \\ 710 & 650 & 60 \\ 605 & 545 & 60 \\ 517 & 547 & - 30 \\ 570 & 508 & 62 \\ 610 & 580 & 30 \end{matrix}$

The claim is that to test if there is significant increase in mean domestic airfare for business travel for one year period.

Thus the null and alternate hypothesis are shown below
$H_{0} : μ_{d} = 0 H_{a} : μ_{d} > 0$

The mean and standard deviation of data of difference d is calculated as shown below
$\overset{__}{d} = \frac{\sum_{}^{} d}{n} = \frac{30 + 63 - 30 + 10 + . . . 62 + 30}{12} = 24 s_{d} = \sqrt{\frac{\sum_{}^{} {(d_{i} - \overset{__}{d})}^{2}}{n - 1}} = \sqrt{\frac{{(30 - 24)}^{2} + {(63 - 24)}^{2} + . . + {(30 - 24)}^{2}}{12 - 1}} = 37.09$

The test statistic is calculated as shown below
$t = \frac{\overset{__}{d} - μ_{d}}{\frac{s_{d}}{\sqrt{n}}} t = \frac{24 - 0}{\frac{37.09}{\sqrt{12}}} = 2.24$

The test statistic is 2.24
The degree of freedom $= n - 1 = 12 - 1 = 11$

This is one tail test. So the p value with test statistic 2.24 and 11 degree of freedom is 0.0234.

Thus at 0.05 level of significance we have strong evidence to reject the null hypothesis as p value less than level of significance.

Thus Reject H₀ : we can conclude that there has been a significant increase in domestic airfare for business travel over one year period.

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