Suppose, consultants for a national hotel chain conducted a review of hotel bills and found that on

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Suppose, consultants for a national hotel chain conducted a review of hotel bills and found that on average, errors in hotel bills resulted in overpayment of

$11.35 per night. To determine if such mistakes are being made at a major hotel chain, the CEO requested a survey yielding the following data:

9.99 9.87 11.53 12.40 12.36 11.68 12.52 9.34 13.13 10.78 9.76 10.88 10.61 10.29 10.23 9.29 8.82 8.70 8.22 11.01 12.40 9.55 11.30 10.21 8.19 10.56 8.49 7.99 8.03 10.53 The file OverPay contains these data.

a. Conduct a hypothesis test with a = 0.05 to determine if the average overpayment is smaller than that indicated by the consultants.

b. If the actual average overpayment at the hotel chain was $11 with an actual standard deviation of $1.50, determine the probability that the hypothesis test would correctly indicate that the actual average is less than $11.35.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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