Central Airlines claims that the median price of a round-trip ticket from Chicago, Illinois, to Jackson Hole,

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Central Airlines claims that the median price of a round-trip ticket from Chicago, Illinois, to Jackson Hole, Wyoming, is $603. This claim is being challenged by the Association of Travel Agents, who believe the median price is less than $603. A random sample of 25 round-trip tickets from Chicago to Jackson Hole revealed 11 tickets were below $603. None of the tickets was exactly $603.

a. State the null and alternate hypotheses.

b. State the decision rule. Use the .05 significance level.

c. Test the hypothesis and interpret the results.

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Statistical Techniques In Business And Economics

ISBN: 9781260239478

18th Edition

Authors: Douglas Lind, William Marchal, Samuel Wathen

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