Answer to Question #203706 in Economics for alex

Question

1.     The manager of the Danvers-Hilton Resort Hotel stated that the mean guest 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 manager’s claim.

A.   Which form of the hypotheses should be used to test the manager’s claim? Explain.

B.     What conclusion is appropriate when H0 cannot be rejected?

C.     What conclusion is appropriate when H0 can be rejected?

Answer 1

A. What form of hypotheses should be used to test the manager's assertion? Since the manager declares that the account is less than or equal to a certain amount, then no more can be checked for the hyponese.

B. What conclusion is correct if H0 cannot be rejected? The accountant will use the sample weekend guest invoices to verify the manager's claim.

C. What conclusion is correct if H0 can be rejected? The hotel's accounting clerk has noticed that overall guest bill costs have increased in recent months.