Statistics Solutions

[Solution] The manager of the Danvers-Hilton Resort Hotel stated that the mean guess bill for a weekend is $600 or less. A member of the hotel’s accounting

Question: The manager of the Danvers-Hilton Resort Hotel stated that the mean guess bill for a weekend is $600 or less. A member of the hotel’s accounting staff noticed that the total charges for guest bills have been increasing in recent months. The accountant will use a sample of weekend guest bills to test the managers claim.

  1. Which form of hypothesis should be used to test the managers claim? Explain
    H o : µ ≥ 600 H o : µ≤ 600 H o : µ = 600
    H a: µ < 600 H a: µ > 600 H a: µ ≠ 600
  2. What conclusion is appropriate when H o cannot be rejected?
  3. What conclusion is appropriate when H o can be rejected?

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