A travel association reported the domestic airfare (in dollars)for business travel for the current year and the previous year.Below is a sample of 12 flights with their domestic airfares shownfor both years.

Current Year	Previous Year
345	315
526	475
420	474
216	206
285	275
405	432
635	585
710	650
605	545
517	547
570	508
610	580

(a)

Formulate the hypotheses and test for a significant increase inthe mean domestic airfare for business travel for the one-yearperiod.

H₀:μ_d = 0

H_a:μ_d ≠ 0

H₀:μ_d < 0

H_a:μ_d = 0

     

H₀:μ_d ≥ 0

H_a:μ_d < 0

H₀:μ_d ≠ 0

H_a:μ_d = 0

H₀:μ_d ≤ 0

H_a:μ_d > 0

Calculate the test statistic. (Use current year airfare −previous year airfare. Round your answer to three decimalplaces.)

Calculate the p-value. (Round your answer to fourdecimal places.)

p-value =  

Using a 0.05 level of significance, what is your conclusion?

Reject H₀. We can conclude that there hasbeen a significant increase in the mean domestic airfare forbusiness travel for the one-year period.RejectH₀. We cannot conclude that there has been asignificant increase in the mean domestic airfare for businesstravel for the one-year period.     Do notreject H₀. We cannot conclude that there hasbeen a significant increase in the mean domestic airfare forbusiness travel for the one-year period. Do not rejectH₀. We can conclude that there has been asignificant increase in the mean domestic airfare for businesstravel for the one-year period.

(b)

What is the sample mean domestic airfare (in dollars) forbusiness travel for each year?

current $  previous $  

(c)

What is the percentage change in mean airfare for the one-yearperiod? (Round your answer to one decimal place.)

  %