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Question: A researcher finds a claim in the newspapers that the average room rate (ARR) of all Abu Dhabi hotels is $163 per night. The researcher takes a sample of 25 hotels in Abu Dhabi and obtains a sample average room rate of $166. Assume that the standard deviation for Abu Dhabi hotels room rates, σ =10.
a. Test: H0 μ = 163, H1 μ ≠ 163, α = 0.05
b. Interpret your results.
c. Construct a 95% confidence interval for the mean and provide a description of the meaning of the confidence interval.
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