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A random sample of 50 passengers between the two airports flying by XYZ Airlines yielded a mean fare of $165. The population standard deviation of the fare is known to be $50.
a) Develop a 94% confidence interval estimate on the fare between the two airports for XYZ.
b) Develop a 98% confidence interval estimate on the fare between the two airports for XYZ.
c) Based on the confidence interval from part (b), does it appear that the mean fare between the two airports by XYZ Airlines is different than $145? State the Hypothesis. Conduct the hypothesis test using the confidence Interval from part (b). What is your conclusion?
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