Question

A travel analyst claims that the mean room rates at a three-star hotel in Chicago is greater than $152. In a random sample of 36 three-star hotel rooms in Chicago, the mean room rate is $160 with a population standard deviation of $41. At α=0.10, what type of test is this and can you support the analyst’s claim using the p-value? Claim is the alternative, reject the null as p-value (0.121) is not less than alpha (0.10), and can support the claim Claim is the null, fail to reject the null as p-value (0.121) is not less than alpha (0.10), and cannot support the claim Claim is the null, reject the null as p-value (0.121) is not less than alpha (0.10), and cannot support the claim Claim is the alternative, fail to reject the null as p-value (0.121) is not less than alpha (0.10), and cannot support the claim

Answer 1

To Test :-

H0 :-

H1 :-  

Test Statistic :-


Z = 1.1707

Test Criteria :-
Reject null hypothesis if


Result :- Fail to reject null hypothesis

Decision based on P value

Reject null hypothesis if P value < level of significance

P value = P ( Z > 1.17 ) = 1 - P ( Z < 1.17 ) = 0.1208   0.121

P value = 0.121 > 0.10, hence we fail to reject null hypothesis

Conclusion :-   Fail to reject the null as p-value (0.121) is not less than alpha (0.10), and cannot support the claim that three-star hotel in Chicago is greater than $152