Question: Are Southwest Airlines’ ticket prices cheaper? Data File Airline Prices gives the round-trip fare for 15 randomly selected Southwest Airlines city-pairs from www.southwest.com and from www.orbitz.com. The fares shown are the lowest round trip airfare available on June 26, 2008 for one adult round-trip departing on July 22, 2008 and returning on July 29, 2008.

1. At the .05 level of significance, is there evidence of a difference between Southwest air fares and airfares for the same city-pairs on Orbitz?

   Complete the following:
   State H 0 .
   2. State H 1 .
   3. State the value of α.
   4. State the value of the test statistic.
   5. State the p-value.
   6. State the decision in terms of H 0 and why.
   7. State the decision in terms of the problem.

2. Construct a 95% confidence interval estimate of the mean difference between Southwest fares and the fares shown on Orbitz.
3. Do the results of parts a and b agree? Explain your answer.

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