Question

The average cost per night of a hotel room in New York City is $269 (SmartMoney, March 2009). Assume this estimate is based on a sample of 45 hotels and that the sample standard deviation is $55.

a. With 95% confidence, what is the margin of error? Round your answer to the nearest dollar.
$

b. What is the 95% confidence interval estimate of the population mean? Round your answers to the nearest dollar.
to

c. Two years ago the average cost of a hotel room in New York City was $229. Discuss the change in cost over the two-year period.
- Select your answer -At the 95% confidence level, I cannot conclude that the price has changed. At the 95% confidence level, we can conclude prices have fallen. At the 95% confidence level, we can conclude prices have risen.

Answer 1

a)

margin of error =$17

b) 95% confidence interval estimate of the population mean =252 ; 286

c) At the 95% confidence level, we can conclude prices have risen.

(as 229 is is lower than confidence interval values)