Question

In order to determine the average price of hotel rooms in Atlanta, a sample of 64 hotels was selected. It was determined that the average price of the rooms in the sample was $108.50 with a known population standard deviation of $16. (15 points) (1) Formulate the hypotheses to determine whether or not the average room price is significantly different from $112. (4 points) (2) Compute the test statistic. (3 points) (3) At 90% confidence using the p-value approach, test the hypotheses. What is your conclusion and why? (4 points) (4) Repeat the hypotheses testing with the critical value approach. What is your conclusion and why? (4 points)

Reviewing for ky test later and can't figure this out. someone please help and break down each step with answers. Im confused.

Answer 1

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- Sor n=64 ã = 108.50 d'apoph Std. den " = 16 Claim: Aug room price is signficantly diferent from 112.8 .. since r' is known , we will use one sample z test 0 Null ; Hoiu = 112 Alternative; H: " 7112 de 0-10 2 Calculating old enor a given (5) test statistic ù given by z z = ī - MHO = 108.50-112 2 -3.5 = -1.75 2 = (3 - from 2 table, cutical z nahree acuptowie z = + 1.645 - 1.645 zet 1649

fvalue approach alue = 2 x P/ T.S. <+1.75 - = 2 x 0.0407 = 0.0802 since P-value = (0.0802 in 8c0.10 in me reject Null hypothesis Conclusion : there i significant difference 6100 ang room pake from 1125 Cutical value approach, since (T.s) lies below -Z. ire lies in rejection region me reject Null hypother's Conclusion will be same.