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Flight price statistics problem

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Central Airlines claims that the median price of a round-trip ticket 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. To resolve the issue, a random sample of 400 round-trip tickets was selected. Of these, 160 tickets were below $503. None of the tickets were exactly $503. Let level of significance=0.05

a. State the null and alternate hypotheses.
b. Reach a decision regarding the controversy.

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Solution Summary

This solution states the null and alternative hypotheses and solves the statistical problem using a one tailed right sided test.

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Let p=propotion of tickets with price <$503
Null Hypothesis: p=0.5 (Note 503 is median so 50% lies on both sides)
Alternate Hypothesis p>0.5 (Note of median price is ...

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