Question

In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The p-value associated with the test statistic (z) is calculated and it is 0.12.

We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

Answer 1

1

Explanation:

Normal distribution

size sample = 64

Standard deviation : 16

We have z(s) = 0,12

By definition

z(s) = [( X - μ₀) /(σ/√) ⇒ 0,12 = ( X - 110) /(16/√64 0,12 = (X-110)*√64/16

0.12* 16 = ( 8*X - 110*8 ) ⇒ 1.92 + 880 = 8*X

X = 110,24