An Airline Claims That the Median Price of a Round-Trip

question 110

Essay

An airline claims that the median price of a round-trip ticket is less than $503. For a random sample of 400 tickets, the value of the Wilcoxon sign-ranks test is T = T⁺ = 37,230.
A) Specify the competing hypothesis to determine whether the median ticket price is less than $503.
B) Assume the normal approximation for the distribution of T, and calculate the value of the corresponding test statistic.
C) At the 10% significance level, what is the decision and conclusion?

• A) Specify the competing hypothesis to determine whether the median ticket price is less than $503.
• B) Assume the normal approximation for the distribution of T, and calculate the value of the corresponding test statistic.
• C) At the 10% significance level, what is the decision and conclusion?

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Definitions:

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to higher concentration.

Solutes

Substances dissolved in a solvent, forming a solution; in biological contexts, these often refer to dissolved minerals, gases, or organic molecules.

Phenylketonuria (PKU)

A genetic disorder characterized by an inability to metabolize the amino acid phenylalanine, leading to intellectual disability if untreated.