Test hypothesis that the proposed route is more profitable

Assignment Help Basic Statistics

Reference no: EM131381008

Air Transport World recently named the Dutch airline KLM "Airline of the Year." One measure of the airline's excellent management is its research effort in developing new routes and improving service on existing routes. The airline wanted to test the profitability of a certain transatlantic flight route and offered daily flights from Europe to the United States over a period of 6 weeks on the new proposed route. Then, over a period of 9 weeks, daily flights were offered from Europe to an alternative airport in the United States. Weekly profitability data for the two samples were collected, under the assumption that these may be viewed as independent random samples of weekly profits from the two populations (one population is flights to the proposed airport, and the other population is flights to an alternative airport). Data are as follows. For the proposed route x‾ = $96,540 per week and s = $12,522.

For the alternative route x‾ = $85,991 and s = $19,548. Test the hypothesis that the proposed route is more profitable than the alternative route. Use a significance level of your choice.

Reference no: EM131381008

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