A survey claims that the average cost of a hotel room in a city is$69.22. To tes

Question

A survey claims that the average cost of a hotel room in a city is$69.22. To test the claim, a researcher selects a sample of 34hotel rooms and finds that the average cost is $67.29. The standarddeviation of the population is $3.31. At = 0.01, is thereenough evidence to reject the claim?


          No                                  Yes

Explanation / Answer

A survey claimsthat the average cost of a hotel room in a city is $69.22. To testthe claim, a researcher selects a sample of 34 hotel rooms andfinds that the average cost is $67.29. The standard deviation ofthe population is $3.31. At = 0.01, is there enoughevidence to reject the claim?           No                                  Yes EXPLANATION: {Null Hypothesis} ----> { = 69.22} {Alt Hypothesis} ----> { 69.22} {PopulationMean} = 69.22 {Population Std Dev} = 3.31 {Sample Size} = 34 {Sample Mean} = 67.29 {Std Error Of Mean} = (3.31)/Sqrt[ 34 ] = 0.56766 {Test Value} = ((67.29) -(69.22))/(0.56766) = -3.4 From standard Normal Z table: {P Value For Test Value} = 0.0007 {P Value LESS than 0.01} ----> {REJECT Null Hyp @0.01 Level} .

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