Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure visitor volume and visitor activity (Orlando Sentinel, May 19, 2018). Hotel occupancy data for February in two consecutive years are as follows. Current Year Previous Year Occupied Rooms 1,505 1,494 Total Rooms 1,750 1,800

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Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of
visitor volume and visitor activity (Orlando Sentinel, May 19, 2018). Hotel occupancy data for February in
two consecutive years are as follows.
Current Year
Previous Year
Occupied Rooms
1,505
1,494
Total Rooms
1,750
1,800
a. Formulate the hypothesis test that can be used to determine whether there has been an increase in the
proportion of rooms occupied over the one-year period.
Let pi = population proportion of rooms occupied for current year
P2 =
lation proportion of rooms occupied for previous year
Ho Pi – p2 less than or equal to 0
Ha: Pi - p2 greater than 0
b. What is the estimated proportion of hotel rooms occupied each year (to 2 decimals)?
Current year
.86
Previous Year
.83
c. Conduct a hypothesis test. What is the p-value (to 4 decimals)? Use Table 1 from Appendix B.
p-value =
Using a 0.05 level of significance, what is your conclusion?
We
A that there has been an increase in the hotel occupancy rate.
can conclude
d. What is the 95% confidence interval estimate of the change in occupancy for the one-year period (to 4
decimals)?
.0059 to
.0541
Do you think area officials would be pleased with the results?
Officials would likely be pleased
+ with the occupancy statistics as the trend for the
current year is
an increase
+ in hotel occupancy rates compared to last year.
Transcribed Image Text:Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (Orlando Sentinel, May 19, 2018). Hotel occupancy data for February in two consecutive years are as follows. Current Year Previous Year Occupied Rooms 1,505 1,494 Total Rooms 1,750 1,800 a. Formulate the hypothesis test that can be used to determine whether there has been an increase in the proportion of rooms occupied over the one-year period. Let pi = population proportion of rooms occupied for current year P2 = lation proportion of rooms occupied for previous year Ho Pi – p2 less than or equal to 0 Ha: Pi - p2 greater than 0 b. What is the estimated proportion of hotel rooms occupied each year (to 2 decimals)? Current year .86 Previous Year .83 c. Conduct a hypothesis test. What is the p-value (to 4 decimals)? Use Table 1 from Appendix B. p-value = Using a 0.05 level of significance, what is your conclusion? We A that there has been an increase in the hotel occupancy rate. can conclude d. What is the 95% confidence interval estimate of the change in occupancy for the one-year period (to 4 decimals)? .0059 to .0541 Do you think area officials would be pleased with the results? Officials would likely be pleased + with the occupancy statistics as the trend for the current year is an increase + in hotel occupancy rates compared to last year.
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