Question

A survey claims that the average cost of a hotel room in Atlanta is more than $125.50 per night. To test this claim, a researcher selects a random sample of 55 hotel rooms and finds that the mean cost per night is $130.75. The standard deviation of the population, σ, is known to be $2.50. At a = 0.05, is there enough evidence to support the claim?

Use the P-Value Method of Testing.

In your work space below, you will need to have -
1. The null hypothesis, Ho
2. The alternative hypothesis, H1
3. The test statistic
4. The type of test(left, right, two-tailed) and the p-value
5. The decision to accept Ho or reject Ho

Answer 1

This is the right tailed test .

The null and alternative hypothesis is

H₀ : = 125.50

H_a : >  125.50

Test statistic = z

= ( - ) /    / n

= (130.75 - 125.50) / 2.5 / 55

= 15.574

Test statistic = 15.574

P-value = 0.000

P-value <

Reject the null hypothesis .