You may need to use the appropriate technology to answer this question. The Global Business 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 Year 345 526 420 216 285 405 635 710 605 517 570 610 Previous Year 315 463 462 206 275 432 585 650 545 547 508 580 (a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period. Ho: Haso H:HVO
You may need to use the appropriate technology to answer this question. The Global Business 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 Year 345 526 420 216 285 405 635 710 605 517 570 610 Previous Year 315 463 462 206 275 432 585 650 545 547 508 580 (a) Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period. Ho: Haso H:HVO
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Transcribed Image Text:**Business Travel Analysis**
The Global Business 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 Year | Previous Year |
|--------------|---------------|
| 345 | 315 |
| 526 | 463 |
| 420 | 462 |
| 216 | 206 |
| 405 | 432 |
| 635 | 585 |
| 710 | 650 |
| 605 | 545 |
| 517 | 547 |
| 570 | 508 |
| 610 | 580 |
**Hypothesis Testing**
Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.
1. Null Hypothesis (\(H_0\)): There is no significant increase in the mean domestic airfare for business travel from the previous year to the current year.
2. Alternative Hypothesis (\(H_a\)): There is a significant increase in the mean domestic airfare for business travel from the previous year to the current year.
The image includes a set of hypotheses options represented by radio buttons. Choose the correct hypothesis to analyze whether there is a significant increase in airfares.

Transcribed Image Text:### Analysis of Domestic Airfare for Business Travel
- **Hypothesis Testing:**
- **Test Statistic Calculation:**
- Formula used: (Current year airfare - Previous year airfare).
- Result: 2.05 (rounded to three decimal places).
- **p-Value Calculation:**
- The calculated p-value is not shown and should be rounded to four decimal places.
- **Conclusion Using 0.05 Level of Significance:**
- Hypothesis \( H_0 \): There has been no significant increase in mean domestic airfare for business travel over the one-year period.
- Hypothesis \( H_1 \): There has been a significant increase.
- Based on the provided options and the checkmark, the test leads to rejecting \( H_0 \).
- Conclusion: We can conclude that there has been a significant increase in mean domestic airfare for business travel for the one-year period.
- **Sample Mean Domestic Airfare:**
- **Current Year:** $4,723
- **Previous Year:** $4,723
- **Percentage Change in Mean Airfare Over One Year:**
- The calculated percentage change is shown as 4.7% (rounded to one decimal place).
#### Additional Information:
This exercise includes performing a hypothesis test to determine changes in airfare costs based on statistical analysis, focusing on critical thinking and data interpretation in an academic context.
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