Solution to A survey found that the average hotel room rate in New Orleans is $88.42 and … - Sikademy
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A survey found that the average hotel room rate in New Orleans is $88.42 and the average room rate in Phoenix is $80.61. Assume that the data were obtained from two samples of 50 hotels each and that the standard deviations of the populations are $5.62 and $4.83, respectively. At α 0.05, can it be concluded that there is a significant difference in the rates?

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As we are testing here whether the hotel stays are cheaper in Phoenix, the test statistic here is computed as:


As the test statistic value here is very low, therefore the p-value here would be approximately equal to 0 and therefore the test is significant and we can reject the null hypothesis here and conclude that we have sufficient evidence that the hotel stays are cheaper in phoenix.

p-value is close to 0 < 0.01 which is the level of significance.

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