Statistics

Statistics

A.6 Homework Set: Hypothesis Testing

A survey claims that the average cost of a hotel room in Atlanta is $69.21. In order to see if this is correct, a researcher selects a sample of 30 hotel rooms and finds that the average cost is $68.43. The standard deviation of the population is $3.72. Also, is there enough evidence to reject the claim?

1. State the hypothesis and identify the claim (alternate hypothesis)

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2. Find the critical value. Hint: this is two-tailed. You will have a positive and negative critical value. Draw the normal curve to help you. Alpha is divided by 2. What is the area inside?

3. Compute the test value

4. Make the decision

Answer key is found on page 86.

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