he Global Business Travel Association reported the domestic airfare for business travel for the current year and previous years (INC, Magazine, February, 2012). Below is 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 years 315 463 462 206 275 432 585 650 545 547 508 580 Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period. Using a 0.05 level of significance, what is your conclusion? What is the sample mean domestic airfare for business travel for each year? What is the percentage change in the airfare for the one year period?
Compound Probability
Compound probability can be defined as the probability of the two events which are independent. It can be defined as the multiplication of the probability of two events that are not dependent.
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Probability theory is a branch of mathematics that deals with the subject of probability. Although there are many different concepts of probability, probability theory expresses the definition mathematically through a series of axioms. Usually, these axioms express probability in terms of a probability space, which assigns a measure with values ranging from 0 to 1 to a set of outcomes known as the sample space. An event is a subset of these outcomes that is described.
Conditional Probability
By definition, the term probability is expressed as a part of mathematics where the chance of an event that may either occur or not is evaluated and expressed in numerical terms. The range of the value within which probability can be expressed is between 0 and 1. The higher the chance of an event occurring, the closer is its value to be 1. If the probability of an event is 1, it means that the event will happen under all considered circumstances. Similarly, if the probability is exactly 0, then no matter the situation, the event will never occur.
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The Global Business Travel Association reported the domestic airfare for business travel for the current year and previous years (INC, Magazine, February, 2012). Below is sample of 12 flights with their domestic airfares shown for both years.
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Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period. Using a 0.05 level of significance, what is your conclusion? |
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What is the sample mean domestic airfare for business travel for each year? |
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What is the percentage change in the airfare for the one year period? |
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