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1. The average airfare for flights departing from Toronto's Pearson International Airport during the first three months of 2018 was $631.40. Assume that the standard deviation for this population of flights is known to be $125. Suppose a random sample of 80 flights departing from Pearson International Airport during the first three months of 2019 is taken.
a. If the mean and standard deviation of the population of airfares for flights departing from Pearson International Airport did not change between the first three months of 2018 and the first three months of 2019, find the probability that the sample mean will be within $30 of the population mean cost per flight?
b. How large a sample would you need to collect in order to obtain a 95% probability that the mean of the sample will be within $20 of the population mean?
c. Suppose the sample mean (of the original sample of 80 airfares) turns out to be $655. Do you think the population average of airfares has changed between the first three months of 2018 and the first three months of 2019? Explain.
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