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ki77a [65]
3 years ago
9

In order to determine the average price of hotel rooms in Atlanta, a sample of 63 hotels were selected. It was determined that t

he test statistic (z) was $-1.53. We would like to test whether or not the average room price is significantly different from $110. Population standard deviation is known to us. Compute the p-value.
Mathematics
1 answer:
olchik [2.2K]3 years ago
5 0

Answer:

Pvalue = 0.063008

Step-by-step explanation:

Given :

Sample size, n = 63

The test statistic = - 1.53

To test if average room price is significantly different from $110 ; μ = $110

H0 : μ = 110

H1 : μ < 110

From the test statistic value obtained, we could see that the test is left tailed

The Pvalue :

P(Z < - 1.53) = 0.063008

If the claim is to be tested at 5% level of confidence then

Pvalue > 0.05 ; Hence, we fail to reject the. NULL. Hence, average price is not significantly different from $110

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