Question

The average cost per night of a hotel room in New York City is $275 (SmartMoney,...

The average cost per night of a hotel room in New York City is $275 (SmartMoney, March 2009). Assume this estimate is based on a sample of 45 hotels and that the sample standard deviation is $70

a. With 95% confidence, what is the margin of error?

b. What is the 95% confidence interval estimate of the population mean?

c.Two years ago the average cost of a hotel room in New York City was $229. Discuss the change in cost over the two year period. a)cannot conclude price has changed b)can conclude price has risen c)can conclude price has fallen

Homework Answers

Answer #1

a) At 95% confidence interval the critical value is t* = 2.015

Margin of error = t* * s/

= 2.015 * 70/

= 21.0265
b) The 95% confidence interval is

+/- ME

= 275 +/- 21.0265

= 253.9735, 296.0265

c) Since the interval does not contain 229 and the lower limit is greater than 229, so we can conclude that the price has risen.

Option - B is correct.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 1 (15 Marks) The average cost per night of a hotel room in New York...
Question 1 The average cost per night of a hotel room in New York City is $273 (SmartMoney, March 2009). Assume this estimate is based on a sample of 45 hotels and that the sample standard deviation is $65. a. With 95% confidence, what is the margin of error? b. What is the 95% confidence interval estimate of the population mean? c. Two years ago the average cost of a hotel room in New York City was $229. Discuss the...
**** PLEASE SHOW HOW TO SOLVE IN EXCEL NOT HANDWRITTEN*** The average cost per night of...
**** PLEASE SHOW HOW TO SOLVE IN EXCEL NOT HANDWRITTEN*** The average cost per night of a hotel room in New York City is $325. Assume this estimate is based on a sample of 100 hotels and that the sample standard deviation is $75. What is the 95% confidence interval estimate of the population mean? What is the 99% confidence interval estimate of the population mean?
The average cost of a hotel room is said to be $170 per night. To determine...
The average cost of a hotel room is said to be $170 per night. To determine if this is true, a random sample of 50 hotels is taken and resulted in a mean of $172.50 and an S of $15.40. At 98% confidence level, the positive value of the critical value is______ (Hint use Excel T.INV function)
The average hotel price in Moscow is $216 per night with a standard deviation of $32....
The average hotel price in Moscow is $216 per night with a standard deviation of $32. The average hotel price in Cancun is $161 per night with a standard deviation of $22. The average hotel price in Bangkok is $100 per night with a standard deviation of $17. A room at the Emerald Hotel in Moscow costs $200 per night, a room at the Ocean View Hotel in Cancun costs $183 per night, and a room at the Emperor Hotel...
The average cost of a hotel room in NYC is $168 per night. A random sample...
The average cost of a hotel room in NYC is $168 per night. A random sample of 25 hotel rooms resulted in X = $172.50 and s = $15.40. Test the claim at the 0.05 level.
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $54. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $141 per night...
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55. (a) What is the probability that a hotel room costs $265 or more per night? (Round your answer to four decimal places.) (b) What is the probability that a hotel room costs less than $110 per night? (Round your answer to four decimal places.)...
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $203 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $54. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $140 per night...
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $54. Using EXCEL. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)? c....
Can you please show work in Excel terms? New York City is the most expensive city...
Can you please show work in Excel terms? New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $203 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $53. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a...