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Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (Orlando Sentinel, May 19,
Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (Orlando Sentinel, May 19, 2018). Hotel occupancy data for February in two consecutive years are as follows. Current Year Occupied Rooms Total Rooms 1,476 Previous Year 1,326 1,800 1,700 a. Formulate the hypothesis test that can be used to determine whether there has been an increase in the proportion of rooms occupied over the one-year period. Let p population proportion of rooms occupied for current year P population proportion of rooms occupied for previous year- Ho P-P less than or equal to 0 HP Preater than b. What is the estimated proportion of hotel rooms occupied each year (to 2 decimals)? Current year Previous Year 0.82 0.78 c. Conduct a hypothesis test. What is the p-value (to 4 decimals)? Use Table 1 from Appendix B P-value 3.0629 Using a 0.05 level of significance, what is your conclusion? We can conclude that there has been an increase in the hotel occupancy rate. d. What is the 95% confidence interval estimate of the change in occupancy for the one-year period (to 4 decimals)? 0.0145 to 0.0655 Do you think area officials would be pleased with the results? Officials would likely be pleased with the occupancy statistics as the trend for the current year is an increase in hotel occupancy rates compared to last year
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