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QUESTION

Allegiant Airlines charges a mean base fare of $89. In addition, the airline charges for marking a reservation on its website, checking bags, and...

Allegiant Airlines charges a mean base fare of $89. In addition, the airline charges for marking a reservation on its website, checking bags, and inflight beverages. These additional charges average $38 per passenger. Suppose a random sample of 50 passengers is taken to determine the total cost of their flight on Allegiant Airlines. The population standard deviation of total flight cost is known to be $35.

a. What is the population mean cost per flight?

b. What is the probability the sample mean will be within $10 of the population mean cost per flight?

c. What is the probability the sample mean will be within $5 of the population mean cost per flight?

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