In order to determine the average price of hotel rooms in Atlanta, a sample of 64 hotels was selected. It was determined that the average price of the rooms in the sample was $108.50 with a standard deviation of $16.
a) Formulate the null and alternative hypotheses to determine whether or not the average room price is significantly different from $112.
b) Compute the test statistic.
c) Using the p-value approach, what is your conclusion? Let alpha = .05.
d) Using the critival value approach, what is your conclusion? Let alpha = .05.
e) Write a concluding statement based on your answers above.