Question

2. A travel agent wanted to know whether the price (in dollars) of Marriot, Hyatt, and Sheraton Hotels differed significantly. The following data represents the room rate for each hotel in 6 randomly selected cities.

	Marriott	Hyatt	Sheraton
Chicago	179	139.40	150
Los Angeles	169	161.50	161
Houston	163	187	189
Boston	189	179.10	169
Denver	179	168	112
Orlando	147	159	147

1. What test is appropriate in this situation?

2. Do you think the price of Marriot, Hyatt, and Sheraton Hotels differed significantly based on the interaction plot below? Use 4 Cs analysis to justify your answer.

3. Determine which pairs differ significantly, if the price differs.

May use MiniTab for statistical analysis

Answer 1

Here, I have used Minitab 18 to answer this question.

This problem can be tackled as an ANOVA (Analysis of Variance) problem.

Here the price (in dollars) of Marriot, Hyatt, and Sheraton Hotels are to be considered as 3 factors with corresponding response values given.

I've used "M", "H" and "S" as 3 factors through out the solution.

Null Hypothesis H0: vs. H1: At least one inequality.

From ANOVA table we've seen that the p-value of the test is 0.367 > 0.05, so we accept the null hypothesis and conclude on the basis of the given data that the price of Marriot, Hyatt, and Sheraton Hotels did not differ significantly.

From the above table, all the p-values are greater than 0.05. So, no pair is differ significantly at 5% level of significance.