Confidence using the p-value approach

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Reference no: EM1316361

In order to determine the average price of hotel rooms in Atlanta, a sample of 64hotels was selected. It was determined that the average price of the rooms in the sample was $108.50 with a standard deviation of $16.

a) Formulate the hypotheses to determine whether or not the average room price is significantly different from $112.

b) Compute the test statistic.

c) At 95% confidence using the p-value approach, test the hypotheses. Let α = 0.1.

Reference no: EM1316361

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