STARS Region_ID 5 1 5 1 5 1 5 1 5 1 5 1 5 1...

STARS	Region_ID
5	1
5	1
5	1
5	1
5	1
5	1
5	1
4	1
4	1
4	1
4	1
4	1
4	1
3	1
3	1
3	1
3	1
3	1
2	1
1	1
4	1
4	1
3	1
3	1
3	1
2	1
2	1
2	1
2	1
1	1
4	1
3	1
2	1
2	1
1	1
1	1
2	1
1	1
1	1
1	1
1	1
1	1
3	1
4	1
2	1
5	2
5	2
5	2
5	2
4	2
4	2
4	2
4	2
4	2
4	2
3	2
3	2
5	2
4	2
3	2
3	2
3	2
5	2
4	2
3	2
3	2
3	2
2	2
2	2
1	2
3	2
2	2
1	2
2	2
2	2
1	2
1	2
1	2
1	2
3	2
2	2
1	2
1	2
1	2
1	2
4	2
4	2
2	2
2	2
2	2
5	3
5	3
5	3
5	3
5	3
5	3
5	3
5	3
5	3
5	3
4	3
4	3
4	3
4	3
3	3
4	3
4	3
4	3
3	3
3	3
3	3
3	3
3	3
3	3
3	3
3	3
2	3
2	3
2	3
2	3
2	3
4	3
2	3
2	3
2	3
2	3
1	3
1	3
2	3
3	3
1	3
1	3
1	3
1	3
1	3

REGION ID

1= Crete
2=Southern Aegean Islands
3=Ionian Islands

George who is the General Director of the Research Institute for Tourism in Greece, believes that the percentage composition of 5 Stars hotels is not the same in Crete and elsewhere (Southern Aegean Islands and Ionian Islands). In order to test this statement, create two additional binary variables as follows:
5STARS: Yes (Code 1) when STARS = 5; No (Code 0) when STARS ≠ 5.
CRETE: Yes (Code 1) when Region_ID = 1; No (Code 0) when Region_ID ≠ 1.
3.1 State the null and the alternative hypotheses.
3.2 Test the null hypothesis at α = 5%.
3.3 What is your conclusion?
3.4 Let π1 denote the population proportion of 5 stars hotels in Crete and π2 the population proportion of 5 stars hotels elsewhere. Set up a symmetric 95% confidence interval estimate of the difference (π1 - π2). What is your main conclusion?

Expert Solution

orchestra answered 2 years ago

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