Question

Assignment: Chapter 10 Humework Questions Exerclze 10.06 Agortthmic Assignment Score: 34.31% ave ubnsit Nssignment ter Gracing Question 3 of il Check y Work cBook Suppose that ycu are raspensible for making arrangemants for a businass convention and that vou hae bean charged with choasing a ciy for the convantion that has the least xpansva rooms. You hae narrawad your chaicos to Atlanta and Hauston. The tahla balow contains samples af prices or moms n Atlanta and Ho ston. Because considerable historical data on the pries of rooms n both dries are ava able he pop ist on standard dev at nns or the prices can be assumed to he 36 n Atlanta and in Houston. AtlantaHoucton Atlanta Houston Atlant Houston Atianta Houston 100 105 105 110 110 140 0. 100 1. 115 115 125 150 145 115 145 140 Rase n the Aan ple data can you conclude that ne mean nrice ถ a hotel ro m n Atlanta s lower than one in Houston, U A α 05 and null hypothesls ls g : μΑ ag > 0 Fnter neaative values as nega ve numbers. 1.27 to 2 decimals) p-vlue 102 tn 4 dacimals) that the mean price of a hotel room in Alanta is lower than the mean price of a hotel room in Houston Hide Feedhackk Partially Correct

Answer 1

First of all we compute the mean prices for both Atlanta and Houston

We get :

For Atlanta

$\bar{X_1} =91.43$

For Houston :

$\bar{X_2} =103.38$

Now, we conduct Z-test for two Means, with Known Population Standard Deviations :

Z-value = - 1.55 ( 2 decimal places)

P-value = 0.0606

We cannot conclude that the mean price of a hotel room in Atlanta is lower than mean price of a hotel room in Houston.