QUESTION 1

1. In order to determine the average price of hotel rooms inAtlanta, a sample of 38 hotels were selected. It was determinedthat the average price of the rooms in the sample was $109.3. Thepopulation standard deviation is known to be $18. We would like totest whether or not the average room price is significantlydifferent from $110.

   Compute the test statistic.

QUESTION 2

1. In order to determine the average price of hotel rooms inAtlanta, a sample of 39 hotels were selected. It was determinedthat the test statistic (z) was $-1.99. We would like to testwhether or not the average room price is significantly differentfrom $110. Population standard deviation is known to us.

   Compute the p-value.

QUESTION 3

1. In order to determine the average price of hotel rooms inAtlanta. Using a 0.1 level of significance, we would like to testwhether or not the average room price is significantly differentfrom $110. The population standard deviation is known to be $16. Asample of 64 hotels was selected. The test statistic (z) iscalculated and it is -1.38.

   We conclude that the average price of hotel rooms in Atlanta isNOT significantly different from $110. (Enter 1 if the conclusionis correct. Enter 0 if the conclusion is wrong.)

QUESTION 4

1. In order to determine the average price of hotel rooms inAtlanta. Using a 0.1 level of significance, we would like to testwhether or not the average room price is significantly differentfrom $110. The population standard deviation is known to be $16. Asample of 64 hotels was selected. The p-value associated with thetest statistic (z) is calculated and it is 0.03.

   We conclude that the average price of hotel rooms in Atlanta isNOT significantly different from $110. (Enter 1 if the conclusionis correct. Enter 0 if the conclusion is wrong.)