<PRE><B>Question 242739</B>
A local paper reports that the average number of representatives per night at a local hotel is 500. Using alpha = .01 is this claim realistic? Use the given hotels reservations listed below: 713 300 292 311 598 401 618
------------
Ho: u = 500
H1: u is not 500
----------------------
sample mean = 240.5 ; sample std = 120.59
-----------------------
CV for 2-tail test, alpha = 1%, df = 6: t = -3.707
TS: t(240.5) = (240.5-500)/[120.59/sqrt(7)] = -5.693
Since the ts is in the reject interval, reject Ho.
Looks like the average number is lower than 500.
Cheers,
Stan H.</PRE>