Question

Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention that has the least expensive rooms. You have narrowed your choices to Atlanta and Houston. The table below contains samples of prices for rooms in Atlanta and Houston. Because considerable historical data on the prices of rooms in both cities are available, the population standard deviations for the prices can be assumed to be $35 in Atlanta and $30 in Houston.

Atlanta	Houston	Atlanta	Houston	Atlanta	Houston	Atlanta	Houston
95	70	95	80	110	60	105	110
115	80	105	95	120	150	85	95
120	110	70	145	95	80	115	85
60	115	105	150	120	90	95	140
80	70	70	100	85	85	85	120
90	110	75	70	70	55		80
70	55	80	60	75	90		125
90	85	105	90	80	145		115
70	140	100	95	125	135		105
95	130	75	55	95	150		65

Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than one in Houston? Use a = .05 and null hypothesis is ho: ua -ub >-- 0 . Enter negative values as negative numbers.

z- value	(to 2 decimals)
p-value	(to 4 decimals)

We - Select your answer -can concludecannot conclude the mean price of a hotel room in Atlanta is lower than the mean price of a hotel room in Houston.

Answer 1

using excel we have

Atlanta	92.14286
Houston	99.625

using excel>phstat>two sample z

we have

Z Test for Differences in Two Means
Data
Hypothesized Difference	0
Level of Significance	0.05
Population 1 Sample
Sample Size	35
Sample Mean	92.14286
Population Standard Deviation	35
Population 2 Sample
Sample Size	40
Sample Mean	99.625
Population Standard Deviation	30
Intermediate Calculations
Difference in Sample Means	-7.48214
Standard Error of the Difference in Means	7.5829
Z Test Statistic	-0.9867
Lower-Tail Test
Lower Critical Value	-1.6449
p-Value	0.1619
Do not reject the null hypothesis

z

Z Test Statistic

-0.9867

p-Value

0.1619

We cannot conclude the mean price of a hotel room in Atlanta is lower than the mean price of a hotel room in Houston.