Question: How do the fares for airlines that directly compete compare? The file Airlines contains roundtrip fares for nonstop travel from Philadelphia to 10 different U.S.

How do the fares for airlines that directly compete compare? The file Airlines contains roundtrip fares for nonstop travel from Philadelphia to 10 different U.S. destinations on Southwest Airlines and American Airlines that a frequent flyer collected.

Source: Data extracted from www.southwest.com/ and www.aa.com/.

a. At the 0.05 level of significance, is there evidence of a difference in mean roundtrip fare between Southwest Airlines and American Airlines?

b. What assumption is necessary in order to perform this test?

c. Use a graphical method to evaluate the validity of the assumption in (b).

Step by Step Solution

3.51 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a At the 05 level there is insufficient evidence that there is a significant difference in fares bet... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Basic Business Statistics Questions!