Question

Hotels and Motels. The daily charges, in dollars, for a sample of 15 hotels and motels operating in South Carolina are provided on the WeissStats site. The data were found in the report South Carolina Statistical Abstract, sponsored by the South Carolina Budget and Control Board.

a. Use the one-mean z-test to decide, at the 5% significance level, whether the data provide sufficient evidence to conclude that the mean daily charge for hotels and motels operating in South Carolina is less than \(75. Assume a population standard deviation of \)22.40.

b. Obtain a normal probability plot, boxplot, histogram, and stem and leaf diagram of the data.

c. Remove the outliers (if any) from the data and then repeat part (a).

d. Comment on the advisability of using the z-test here.

Short answer

Ans:

Step-by-step solution

Step 1. Given information.

given,

Step 2.