Question

Kennebunkport, Maine, is a popular tourist town, but businesses suffer during the winter months, especially January. The mean hotel room occupation rate per day, a measure of tourist activity, is 23.1% during winter months. A new advertising campaign was launched to attract more tourists to this town during the winter. Following the campaign, a random sample of nine winter days was selected. The mean hotel room occupation rate was x = 24.6% and s = 2.1%. Is there any evidence to suggest the mean hotel room occupation rate has increased? Assume normality and use α = 0.01.

Give the value of the appropriate t_{α, n − 1} or t_{α/2, n − 1}. (Round your answer to four decimal places.)

_________________

Calculate the test statistic. (Round your answer to four decimal places.)

t = _______________________

Answer 1

The test hypothesis is

This is a one-sided test because the alternative hypothesis is formulated to detect the difference from the hypothesized mean on the upper side

Since the sample size is n = 9, degrees of freedom on the t-test statistic are n-1 = 9-1 = 8

This implies that

Now, the value of test static can be found out by following formula: