A travel analyst claims that the mean of the room rates for two adults at three-star hotels

Question:

A travel analyst claims that the mean of the room rates for two adults at three-star hotels in Salt Lake City is $134. In a random sample of 37 three-star hotels in Salt Lake City, the mean room rate for two adults is $143. Assume the population standard deviation is $30. At α = 0.10, is there enough evidence to reject the analyst’s claim?


For each exercise, perform the steps below.

(a) Identify the claim and state H0 and Ha.

(b) Determine whether the hypothesis test is left-tailed, right-tailed, or two-tailed, and whether to use a z-test, a t-test, or a chi-square test. Explain your reasoning.

(c) Choose one of the options.

Option 1: Find the critical value(s), identify the rejection region(s), and find the appropriate standardized test statistic.

Option 2: Find the appropriate standardized test statistic and the P-value. 

(d) Decide whether to reject or fail to reject the null hypothesis.

(e) Interpret the decision in the context of the original claim.

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