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entral Airlines claims that the median price of a round-trip ticket from Chicago to Jackson Hole,...

entral Airlines claims that the median price of a round-trip ticket from Chicago to Jackson Hole, Wyoming, is $503. This claim is being challenged by the Association of Travel Agents, who believe the median price is less than $503. A random sample of 406 round-trip tickets from Chicago to Jackson Hole revealed 186 tickets were below $503. None of the tickets was exactly $503. Let α = 0.05.

a. State the null and alternate hypotheses.

H0: Median ≥___
H1: Median <___

b. What is your decision regarding H0? Interpret. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Reject H0 if z < –0.05. z = (Do not reject, reject) H0. Median is (greater, less) than $503.
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