Question
Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention
Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The file named Hotel contains samples of prices for rooms in Atlanta and Houston that are consistent with a SmartMoney survey conducted by Smith Travel Research. Because considerable historical data on the prices of rooms in both cities are available, the population standard deviations for the prices can be assumed to be $15 in Atlanta and $20 in 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?
State the hypotheses. (Let 1 = mean hotel price in Atlanta and let 2 = mean hotel price in Houston.)
H0: 1 2 = 0
Ha: 1 2 0
H0: 1 2 0
Ha: 1 2 < 0
H0: 1 2 0
Ha: 1 2 = 0
H0: 1 2 > 0
Ha: 1 2 = 0
H0: 1 2 < 0
Ha: 1 2 0
Calculate the test statistic. (Round your answer to two decimal places.)
Calculate the p-value. (Round your answer to four decimal places.)
p-value =
What is your conclusion? (Use = 0.05.)
Reject H0. There is insufficient evidence to conclude that the mean price of a hotel room in Atlanta is lower than the mean price of a hotel room in Houston.
Do not reject H0. There is sufficient evidence to conclude that the mean price of a hotel room in Atlanta is lower than the mean price of a hotel room in Houston.
Reject H0. There is sufficient evidence to conclude that the mean price of a hotel room in Atlanta is lower than the mean price of a hotel room in Houston.
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