Air Canada is preparing to launch a new airline specializing in servicing international flights, and is conducting a survey to collect data on the reasons for travel and the types of flights taken by its current customers. The survey was randomly given to individuals who had booked a flight for travel within the next month.
| International | Domestic | Total |
Leisure Purposes | 250 | 450 | 700 |
Business Purposes | 550 | 300 | 850 |
Total | 800 | 750 | 1550 |
Part i
A traveller is selected at random. What is the probability that he is travelling for business reasons given that his destination is outside of Canada?
Part ii
Which of the following statements is true?
Part iii
In order to attract potential customers to its new airline, Air Canada is giving discounts
to individuals that are flying to international destinations during its first month
of service. The 800 individuals who were travelling outside of Canada were invited to
participate in the following experiment. Half of the individuals travelling for business related reasons
are randomized to receive the discounted air fare and half do not receive a discount.
The individuals travelling for leisure purposes are randomized in a similar fashion. After
six months, the proportion of business travellers who continue to fly with Air Canada's new airline is
compared between the discounted airfare group and the regular airfare group. The same comparison is also
done among the leisure travellers.
In the experiment described above, reasons for travel (leisure versus business) [CHECK ALL THAT APPLY]
Part iv
What is the purpose of performing the treatment randomization and comparison for the leisure and business travellers separately? Choose the most appropriate answer.
Part v
To display the data for the two variables: reasons for travel and whether travellers switch to taking the new airline after six months, what is the most appropriate display to use?
You can earn partial credit on this problem.