Laura Naples, Manager of Heritage Inn, Periodically Collects and Tabulates $\bullet$

Essay

Laura Naples, Manager of Heritage Inn, periodically collects and tabulates information about a sample of the hotel's overnight guests. This information aids her in pricing and scheduling decisions she must make. The table below lists data on ten randomly selected hotel registrants, collected as the registrants checked out. The data listed are:
$\bullet$ Number of people in the group
$\bullet$ Hotel's shuttle service used: yes or no
$\bullet$ Total telephone charges incurred
$\bullet$ Reason for stay: business or personal
a. Before cell telephones became so common, the average telephone charge per registered group was at least $5.00. Laura suspects that the average has dropped. Test H₀: $\mu$ > 5 and H_a: $\mu$ < 5 using a .05 level of significance. Use both the critical value and p-value approaches to hypothesis testing.
b. In the past, Laura has made some important managerial decisions based on the assumption that the average number of people in a registered group is 2.5. Now she wonders if the assumption is still valid. Test the assumption with a = .05 and use both the critical value and p-value approaches.