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:

Narrowcasting

The dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes.

Major Television Networks

Large national or international broadcasting organizations that distribute television content across a wide geographic area.

Product Placement

An advertising technique in which a company promotes its products through appearances in movies or on television shows or other media.

Advertisement

A marketing communication intended to inform, persuade, or remind consumers about a product or service, typically paid for and disseminated through various media channels.