Airline passengers often choose departing airport between
Airfare. Airline passengers often choose departing airport between Dane country regional airport inMadison and General Mitchell International Airport in Milwaukee based on airfare. Cost data for asample of 100 destinations were collected as below along with ?^ d =sd =150 : di Destination Dane (X 1 i ) Mitchell ( X 2 i ) Grand Rapids, MichiganPortland, OregonAtlantaSeattleMiami 75943 65907 00-6 Dallas-Ft. WorthSample Mean $1056$560 $659$510 $397 ? ? ? ? a) What is the population under study?b) Can we say that Var ( X 1 i?X 2 i ) =Var ( X 1 i )+ Var ( X 2 i) ? c) Construct a 95% confidence interval for the difference in airfares between Dane country regionalairport and General Mitchell International Airport.Your friend argues that it is cheaper to fly out of Mitchell airport than Dane airport even after paying $40for roundtrip bus ticket to Mitchell airport.d) Formulate the null and alternative hypothesis to argue that your friend’s claim is right.e) What is your test statistic? Specify its distribution.f) Compute the value of test statistic with our current sample and its p-value.g) Using a significance level of 0.25, can you conclude that your friend’s claim is right? 1
