Question

The manager of a resort hotel stated that the mean guest bill for a weekend is $900 or less. A member of the hotel's accounting staff noticed that the total charges for guest bills have been increasing in recent months. The accountant will use a sample of future weekend guest bills to test the manager's claim. (a) Which form of the hypotheses should be used to test the manager's claim? Explain. Hou > 900 Hu< 900 Hou 5 900 Hu > 900 Ho u = 900 Ha: 900 The hypotheses Ho:u > 900 and H u < 900 should be used because the accountant wants to test the manager's claim that the mean guest bill u is greater than or equal to 900 and find evidence to support u < 900. The hypotheses Ho: u S 900 and H u > 900 should be used because the accountant wants to test the manager's claim that the mean guest bill u is less than or equal to 900 and find evidence to support u > 900. The hypotheses Ho: u = 900 and He: u * 900 should be used because the accountant wants to test the manager's claim that the mean guest bill u is equal to 900 and find evidence to support u € 900. (b) What conclusion is appropriate when He cannot be rejected? We are not able to conclude that the manager's claim is wrong. We cannot conclude that u + 900. We are not able to conclude that the manager's claim is wrong. We can conclude that u > 900. We are able to conclude that the manager's claim is wrong. We can conclude that u 5 900. We are able to conclude that the manager's claim is wrong. We can conclude that u = 900. We are not able to conclude that the manager's claim is wrong. We cannot conclude that u > 900. (c) What conclusion is appropriate when He can be rejected? We are not able to conclude that the manager's claim is wrong. We can conclude that u > 900. We are not able to conclude that the manager's claim is wrong. We can conclude that u < 900. We are able to conclude that the manager's claim is wrong. We can conclude that u > 900. We are able to conclude that the manager's claim is wrong. We can conclude that u < 900. We are able to conclude that the manager's claim is wrong. We can conclude that u # 900.

Answer 1

A)

Ho : u <=900

Ha : u > 900

So, the hypothesis Ho : u<=900 and Ha : u > 900 will be used

B)

If Ho cannot be rejected

Then it means u is less then or equal to 900

So conclusion would be

We are not able to conclude that manager's claim is wrong

We cannot conclude that u > 900

C)

Ho can be rejected that is

u > 900

So,

We are able to conclude that manager's claim is wrong

We can conclude that u > 900