Question

A particular city would like to put information on their tourism website to give travellers an idea of how much they should expect to pay per night for a hotel room. A random sample of 10 popular hotels in the city center produced an average rate of $220, with a standard deviation of $17. A second random sample was taken of 15 hotels outside the city center, but within 5 km of the city, and this sample had an average rate of $139, with a standard deviation of $14. Find the upper bound of a 95% confidence interval for the amount that the average hotel rate within the city center exceeds the average rate for hotels within 5 km. Assume the populations are approximately normal.

Answer 1

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