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:

Expectation-States Theory

Expectation-States Theory is a sociological theory that explains how individuals form expectations of others in a group and how these expectations influence interactions and hierarchies.

Diffuse

To spread or cause to spread over a wide area or among a large number of people.

Specific

refers to something clearly defined or identified, often used to describe a particular detail, requirement, or characteristic.

Power Tactics

Strategies and techniques deployed by individuals or groups to manipulate or influence others to gain authority or achieve goals.