A traveler wanted to know if the prices of hotels are different in the ten citie

Question

A traveler wanted to know if the prices of hotels are different in the ten cities that he visits the most often. The list of the cities with the corresponding hotel prices for his two favorite hotel chains is in the table below. Test at the 1% level of significance. (Use Hilton prices ? Hyatt prices for the difference.)

239

- State the distribution to use for the test. (Enter your answer in the form z or tdf where df is the degrees of freedom.)

-What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)

- What is the p-value? (Round your answer to four decimal places.)

Cities Hyatt Regency prices in dollars Hilton prices in dollars Atlanta 108 170 Boston 358 288 Chicago 209 300 Dallas 209 198 Denver 167 169 Indianapolis 179 214 Los Angeles 179 169 New York City 625 459 Philadelphia 179 159 Washington, DC 245

239

- State the distribution to use for the test. (Enter your answer in the form z or tdf where df is the degrees of freedom.)

-What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)

- What is the p-value? (Round your answer to four decimal places.)

Explanation / Answer

t distributions use for the test because sample value is less than 30

Hypothesis:
H0 : mu1 -mu2 =0
Ha : mu1 -mu2 not euals to 0

Test statistics:

t = (x1 -x2) /sqrt(s1^2/n1 + s2^2/n2)
= (236.5 - 245.8)/sqrt(92.9316^2/10 + 148.2024^2/10)
= -0.1681

p value = .8703

Do not reject teh null hypothesis

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