Chapter 6, Problem 23P

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 future weekend guest bills to test the manager’s claim.

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

$\begin{array}{l}{H}_0:\mu \ge 600H_0:\mu \le 600H_0:\mu =600\\ H_{\text{a}}:\mu <600H_{\text{a}}:\mu >600H_{\text{a}}:\mu \ne 600\end{array}$

1. b. What conclusion is appropriate when H₀ cannot be rejected?
2. c. What conclusion is appropriate when H₀ can be rejected?