Question: Question 1:

Your company boss has asked you to research locations for a future company conference. You have been asked to identify which city is cheaper for hotel rooms, Miami or Tampa. The associated data file contains samples of prices for rooms in Miami and Tampa. There is considerable historical data on hotel prices in these two cities, which allows you to estimate the population standard deviation in prices to be $23 in Miami and $20 in Tampa. Based on the sample data, can you conclude that hotel prices are cheaper in Tampa than in Miami? Use a formal hypothesis test to answer this question. Make sure you define all of your terms, and make explicit any assumptions you are making in the process of testing this hypothesis. Which city would you recommend for the convention (if cheap accommodation was the deciding factor)?