Chapter 7, Problem 2CT

Take this test as you would take a test in class.

For each exercise, perform the steps below.

1. (a) Identify the claim and state H₀ and H_a.
2. (b) Determine whether the hypothesis test is left-tailed, right-tailed, or two-tailed, and whether to use a z-test, a t-test, or a chi-square test. Explain your reasoning.
3. (c) Choose one of the options.

Option 1: Find the critical value(s), identify the rejection region(s), and find the appropriate standardized test statistic.

Option 2: Find the appropriate standardized test statistic and the P-value.

1. (d) Decide whether to reject or fail to reject the null hypothesis.
2. (e) Interpret the decision in the context of the original claim.

2. A travel analyst claims that the mean of the room rates for two adults at three-star hotels in Salt Lake City is $134. In a random sample of 37 three-star hotels in Salt Lake City, the mean room rate for two adults is $143. Assume the population standard deviation is $30. At α = 0.10, is there enough evidence to reject the analyst’s claim? (Adapted from Expedia)