Question

Suppose that you are responsible for making arrangements for a medical convention and you have been charged with finding a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The data set contains a sample of hotel room prices from Atlanta and Houston. Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than one in Houston? Perform a two-sample t-test with a significance level of α = 0.05. Use Excel to show your work.

Atlanta	Houston
85	125
65	110
100	105
120	120
115	85
125	115
65	65
90	60
115	95
70	105
80	115
60	75
65	100
70	90
75	115
65	160
80	65
85	80
95	60
85	85
85	130
85	110
120	95
90	90
90	125
80	90
115	125
110	90
125	85
80	55
125	150
60	120
105	80
110	75
120	105

1. Create a box plot of the data.

2. State the null and alternative hypotheses. Is this a left-tailed, right-tailed or two-tailed test?

3. Compute the following. Assume unequal variance and df = 66. The t.test() function can be used to compute the p-value directly.

alpha

stand err

df

critical T

test T

p-value

Do you reject or fail to reject the null hypothesis? Whats the conclusion?

Answer 1

t-Test: Two-Sample Assuming Unequal Variances
	Atlanta	Houston
Mean	91.71429	98.71429
Variance	445.5042	629.916
Observations	35	35
Hypothesized Mean Difference	0
df	66
t Stat	-1.26282
P(T<=t) one-tail	0.105548
t Critical one-tail	1.668271
P(T<=t) two-tail	0.211096
t Critical two-tail	1.996564

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Series 1 = Atlanta

Series 2 = Houstan

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Left - tailed Test

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c) p-value = 0.105548    Fail to reject Ho

since p-value is greater than 0.05

alpha = 0.05

stand err =

df    = 66

critical T = -1.668

test T = -1.263

p-value = 0.1055

Conclusion= We have enough evidence to conclude that it can not be concluded that the mean price of a hotel room in Atlanta is lower than one in Houston