Answered: John, an experienced Airbnb host claims…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

John, an experienced Airbnb host claims that true average rental price per night for a shared room in lower east side of Manhattan is $100. A sample of 15 shared room rentals from the neighborhood yields a sample average price per night of $85 with a standard deviation $17 (source: Kaggle.com).

Suppose the distribution of price per night is normally distributed. Is there sufficient evidence to believe that average price per night for a shared room in Manhattan’s lower east side is less than what John claims? (Use 5% significance level)?

(3 points) Calculate the p value for the test. You may use MINITAB to get the numerical value of the p value. However, you MUST clearly state the p value as a probability statement.
(5 points) Make the decision about the null hypothesis and write the final conclusion in the context of the problem.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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