As a member of the tourism board for a large city, you have been tasked with evaluating occupancy rates in hotels and Airbnbs. You design a study whereby you identify all the hotels and Airbnbs in the city, and randomly select 100 within each group to visit. You find that the occupancy rates for hotels and Airbnbs to be 90.1% and 85.6% respectively, with standard deviations of 2.8% and 3.1% respectively. What is the upper 95% confidence interval for Airbnb occupancy rates in the study? Options: a) 85% ≤ ANSWER < 90% b) 90% ≤ ANSWER < 95% c) 75% ≤ ANSWER < 80% d) 80% ≤ ANSWER < 85% e) 95% ≤ ANSWER < 100%
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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