SOLUTION: A. Travel agent claims that the average # of rooms in hotels in a large city is 500. At a=0.01, is the claim realistic? The data for a sample of 7 hotels are shown. Give a reason w

Question 748123: A. Travel agent claims that the average # of rooms in hotels in a large city is 500. At a=0.01, is the claim realistic? The data for a sample of 7 hotels are shown. Give a reason why the claim might be deceptive.
713 300 292 311 598 401 618
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Travel agent claims that the average # of rooms in hotels in a large city is 500. At a=0.01, is the claim realistic? The data for a sample of 7 hotels are shown. Give a reason why the claim might be deceptive.
713 300 292 311 598 401 618
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Ho: u = 500 (claim)
Ha: u # 500
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x-bar = 462 (when rounded up to a whole number)
s(x) = 176
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t(462) = (462-500)/[176/sqrt(7)] = -0.5712
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p-value = 2*P(t < -0.5712 when df = 6) = 2*tcdf(-100,-0.5712,6) = 0.59
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Conclusion: Since the p-value is greater than 1%, fail to reject Ho.
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The test results support the claim.
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Cheers,
Stan H.
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