Airline ticket prices are generally optimized for the airline’s benefit, not for the consumer. On July 8, 2010, at the online travel agency http://www.expedia.com, the following airfares were proposed for roundtrip travel from Seattle to Boston leaving one week later: AirTran: $721; Alaska: $787; American: $1,319; Continental: $729; Delta: $520; Frontier: $661; Jet Blue: $657; U.S. Airways: $676; and United: $510.
a. Compute the standard deviation, viewing these airfares as a sample of fares that might be obtained under similar circumstances.
b. Write a paragraph interpreting the standard deviation and discussing variation in airline fares.