Question

a)In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The p-value associated with the test statistic (z) is calculated and it is 0.03. We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

b)In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The test statistic (z) is calculated and it is -1.45. We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

C)A sample of 28 account balances of a credit company was taken to test whether the mean of all account balances is significantly greater than $1,150. Using the sample standard deviation, the test statistic (t) was calculated to be $1.93. We use a 0.05 level of significance. Assume the population of account balances is normally distributed and the population standard deviation is unknown to us.We conclude that the mean of all account balances is significantly greater than $1,150. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

Answer 1

1). 0

[the statement is false.

hypothesis:-

p value = 0.03 < 0.10 (alpha)

so, we reject the null hypothesis.

We conclude that the average price of hotel rooms in Atlanta is significantly different from $110.]

2) 1

[the statement is true.

hypothesis:-

z critical value for alpha=0.10, both tailed test be:-

we reject the null hypothesis if:-

decision:-

so, we fail to reject the null hypothesis.

We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110.]

3) 1

[the statement is true.

hypothesis:-

t critical value for alpha=0.05, df =(28-1) = 27, right tailed test be:-

[ as the test statistic is calculated based on sample sd ..we will use t distribution]

we reject the null hypothesis if:-

decision:-

so, we reject the null hypothesis.

there is sufficient evidence to conclude that the mean of all account balances is significantly greater than $1,150]

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