Population standard deviation

Reference no: EM13968605

Recently, three new airlines, MAXjet, L'Avion, and Eos, began operations selling business or ?rst-class-only service.5 These airlines need to estimate the highest fare a business-class traveler would pay on a New York to Paris route, roundtrip. Suppose that one of these airlines will institute its route only if it can be reasonably certain (90%) that passengers would pay $1,800. Suppose also that a random sample of 50 passengers reveals a sample average maximum fare of $1,700 and the population standard deviation is $800.

a. Construct a 90% con?dence interval.

b. Should the airline offer to ?y this route based on your answer to part (a )?

Reference no: EM13968605

Questions Cloud

Average amount of claims against physicians : An insurance company handling malpractice cases is interested in estimating the average amount of claims against physicians of a certain specialty.

Discuss the factors involved in the outsourcing decision : Prepare a 4 page paper that includes the following: Discuss the factors involved in the outsourcing decision. Describe the issues surrounding the sense of control

Calculating confidence interval for the population mean : A new low-calorie pizza introduced by Pizza Hut has an average of 150 calories per slice. If this number is based on a random sample of 100 slices, and the population standard deviation is 30 calories, give a 90% confidence interval for the popula..

Develop mission statement and a vision statement for process : Develop a Mission statement and a Vision statement for the process (or service) being chosen for PI in order to identify the team purpose and clarify the team goals.

Population standard deviation : Suppose also that a random sample of 50 passengers reveals a sample average maximum fare of $1,700 and the population standard deviation is $800.

How do the alternatives compare : Recommendation(s). A recommendation to the entrepreneur for the action he/she should take to resolve his/her problem or major issue

Describe model of economic lifes structure and its dynamics : The physiocrats created the first "model" of economic life. Describe its structure and its dynamics (i.e., how does the model "work").

What is your role as a health care team member : Interview a fellow peer in your class who works in a different health discipline than you. Begin your interview with the following questions: What is your role as a health care team member?

Standard error of the slope estimate : The sample was of 2,058 ?rms, and the regression slope estimate was -0.051. The reported p-value was 0.034.13 What was the standard error of the slope estimate? Interpret the ?ndings.

User Account

All Pages