The Caribbean : $1099 $1057 $1121 $1068 $1185 $1100
Alaska : $1165 $1184 $1246 $1301 $1284 $1200
H0:
Ha:
Reject Ho / Do NOT Reject Ho Why?
SOLUTION-
A TRAVEL AGENT CLAIMS THAT THE AVERAGE SEVEN DAY CRUISE TO CARIBBEAN IS CHEAPER THAN ALASKA
A.) LET BE THE POPULATION MEAN FOR CARIBBEAN AND BE THE POPULATION MEAN FOR ALASKA.
THE APPROPRIATE HYPOTHESIS FOR THIS SCENARIO IS-
WE USE MINITAB-16 TO COMPUTE THE CALCULATIONS AND PERFORM A TWO SAMPLE-T TEST
STEPS: ENTER THE DATA IN SEPERATE COLUMNS> STAT> BASIC STATISTICS> TWO-SAMPLE T> ENTER THE SAMPLES> UNDER 'OPTIONS', SET THE CONFIDENCE LEVEL 95.0 AND ALTERNATE AS 'LESS THAN'> OK
B.) THE VALUE OF THE TEST STATISTIC IS T= -4.26
C.) THE OBSERVED P-VALUE IS 0.001 AND THE ESTIMATED D.F IS D.F=9
D.) AS P-VALUE IS LESS THAN 0.05( LEVEL OF SIGNIFICANCE), WE REJECT THE NULL HYPOTHESIS AND CONCLUDE THAT AVERAGE CRUISE TO CARIBBEAN IS CHEAPER AS COMPARED TO ALASKA.
E.) AT 0.01 LEVEL OF SIGNIFICANCE, WE REPEAT THE ABOVE EXPERIMENT, SETTING THE CONFIDENCE LEVEL AS 99.0
OBSERVATION- T-VALUE=-4.26, D.F=9, P-VALUE=0.001
AS THE P-VALUE IS LESS THAN 0.01(LEVEL OF SIGNIFICANCE), WE REJECT THE NULL HYPOTHESIS AND CONCLUDE THAT AVERAGE CRUISE TO CARIBBEAN IS CHEAPER AS COMPARED TO ALASKA.
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