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Hypothesis test on a difference in two means( Prices per one day for the same ho

ID: 3317052 • Letter: H

Question

Hypothesis test on a difference in two means( Prices per one day for the same hotel from two different sources).

Hotel Name

Price Website 1

Price Website 2

Jaslin Hotel

$105

$119

Lowes Chicago Hotel

$192

$199

The James Chicago-Magnificent Mile

$99

$113

The Godfrey Hotel

$138

$152

Park Hyatt Chicago Hotel

$321

$328

The Hotel at Midtown

$262

$269

Kimpton Gray Hotel

$127

$134

Silversmith Hotel Chicago Downtown

$170

$156

River Hotel

$114

$121

Central Loop Hotel

$121

$114

Virgin Hotels Chicago

$166

$187

Fairmont Chicago at Millennium Park

$152

$169

Four Seasons Hotel Chicago

$313

$320

Thompson Chicago

$255

$305

ACME Hotel Company Chicago

$138

$152

Wyndham Grand Chicago Riverfront

$118

$125

Chicago Athletic Association

$300

$349

Trump International Hotel

$411

$425

The Langham Chicago

$296

$344

Inn of Chicago

$102

$116

Radisson Blu Aqua Hotel Chicago

$153

$160

Dewitt Hotel

$151

$178

Ace Hotel Chicago

$230

$237

Sheraton Grand Chicago

$142

$149

Crowne Plaza Chicago West Loop

$130

$171

Comfort Suites Michigan Avenue Loop

$145

$169

The Talbott Hotel

$223

$279

Conrad Chicago

$261

$275

Ambassador Chicago

$164

$178

Hyatt Regency Chicago

$192

$199

Congress Plaza Hotel

$142

$149

Sofitel Chicago Magnificient Mile

$174

$188

Dana Hotel and Spa

$138

$152

Kimpton Hotel Palomar Chicago

$157

$164

Perform a t-test to determine if the relationship is significant or not. Use a 5% level of significance and show all parts of the test.

Hotel Name

Price Website 1

Price Website 2

Jaslin Hotel

$105

$119

Lowes Chicago Hotel

$192

$199

The James Chicago-Magnificent Mile

$99

$113

The Godfrey Hotel

$138

$152

Park Hyatt Chicago Hotel

$321

$328

The Hotel at Midtown

$262

$269

Kimpton Gray Hotel

$127

$134

Silversmith Hotel Chicago Downtown

$170

$156

River Hotel

$114

$121

Central Loop Hotel

$121

$114

Virgin Hotels Chicago

$166

$187

Fairmont Chicago at Millennium Park

$152

$169

Four Seasons Hotel Chicago

$313

$320

Thompson Chicago

$255

$305

ACME Hotel Company Chicago

$138

$152

Wyndham Grand Chicago Riverfront

$118

$125

Chicago Athletic Association

$300

$349

Trump International Hotel

$411

$425

The Langham Chicago

$296

$344

Inn of Chicago

$102

$116

Radisson Blu Aqua Hotel Chicago

$153

$160

Dewitt Hotel

$151

$178

Ace Hotel Chicago

$230

$237

Sheraton Grand Chicago

$142

$149

Crowne Plaza Chicago West Loop

$130

$171

Comfort Suites Michigan Avenue Loop

$145

$169

The Talbott Hotel

$223

$279

Conrad Chicago

$261

$275

Ambassador Chicago

$164

$178

Hyatt Regency Chicago

$192

$199

Congress Plaza Hotel

$142

$149

Sofitel Chicago Magnificient Mile

$174

$188

Dana Hotel and Spa

$138

$152

Kimpton Hotel Palomar Chicago

$157

$164

Explanation / Answer

H0 : There are no difference between prices per one day for the same hotel from two different sources. 1 - 2 = 0

Ha : There are no difference between prices per one day for the same hotel from two different sources. 1 - 2 0

Here we will use t test for paired(dependent data) for two sample means.

HEre the difference table is

Here average difference in prices are dbar = $ 15.971

Standard deviation of difference in prices sd = $ 15.789

sample size = 34

Standard error of difference sed = sd / sqrt(n) = 15.789/ sqrt(34) = $ 2.7078

Test statistic

t = (dbar)/ sed  = 15.971/2.7078 = 5.8979

Here for dF = 34 - 1= 33 and alpha = 0.05

tcritical = t33,0.05 = 2.03222

Here t > tcritical so we shall reject the null hypothesis and can conclude that there is signifcant difference between the prices mentined on two websites.

Hotel Name Price Website 1 Price Website 2 Difference Jaslin Hotel $105 $119 $14 Lowes Chicago Hotel $192 $199 $7 The James Chicago-Magnificent Mile $99 $113 $14 The Godfrey Hotel $138 $152 $14 Park Hyatt Chicago Hotel $321 $328 $7 The Hotel at Midtown $262 $269 $7 Kimpton Gray Hotel $127 $134 $7 Silversmith Hotel Chicago Downtown $170 $156 ($14) River Hotel $114 $121 $7 Central Loop Hotel $121 $114 ($7) Virgin Hotels Chicago $166 $187 $21 Fairmont Chicago at Millennium Park $152 $169 $17 Four Seasons Hotel Chicago $313 $320 $7 Thompson Chicago $255 $305 $50 ACME Hotel Company Chicago $138 $152 $14 Wyndham Grand Chicago Riverfront $118 $125 $7 Chicago Athletic Association $300 $349 $49 Trump International Hotel $411 $425 $14 The Langham Chicago $296 $344 $48 Inn of Chicago $102 $116 $14 Radisson Blu Aqua Hotel Chicago $153 $160 $7 Dewitt Hotel $151 $178 $27 Ace Hotel Chicago $230 $237 $7 Sheraton Grand Chicago $142 $149 $7 Crowne Plaza Chicago West Loop $130 $171 $41 Comfort Suites Michigan Avenue Loop $145 $169 $24 The Talbott Hotel $223 $279 $56 Conrad Chicago $261 $275 $14 Ambassador Chicago $164 $178 $14 Hyatt Regency Chicago $192 $199 $7 Congress Plaza Hotel $142 $149 $7 Sofitel Chicago Magnificient Mile $174 $188 $14 Dana Hotel and Spa $138 $152 $14 Kimpton Hotel Palomar Chicago $157 $164 $7 Average $15.971 Std. Dev. $15.789