Solution-Estimate the highest fare business-class traveler

Estimate the highest fare business-class traveler would pay

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Reference no: EM131693971

Question: Recently, three new airlines, MAX jet, L'Avion, and Eos, began operations selling business or first-class-only service. 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% confidence interval.

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

Reference no: EM131693971

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Estimate the highest fare business-class traveler would pay

Reference no: EM131693971

Reference no: EM131693971

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