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The average cost per night of a hotel room in New York City is $278 (SmartMoney, March 2009). Assume this estimate is based on a sample of 45 hotels and that the sample standard deviation is $55.
a. With 95% confidence, what is the margin of error? Round your answer to the nearest dollar.
b. What is the 95% confidence interval estimate of the population mean? Round your answers to the nearest dollar.
Two years ago the average cost of a hotel room in New York City was $229. Discuss the change in cost over the two-year period.
- Select your answer -
At the 95% confidence level, I cannot conclude that the price has changed.
At the 95% confidence level, we can conclude prices have fallen.
At the 95% confidence level, we can conclude prices have risen.
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