A travel analyst claims that the standard deviation of the room rates for two adults at three-star

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A travel analyst claims that the standard deviation of the room rates for two adults at three-star hotels in Denver is at least $68. A random sample of 18 three-star hotels has a standard deviation of $40. At α = 0.01, is there enough evidence to reject the claim?


(a) Identify the claim and state H0 and Ha

(b) Find the critical value(s) and identify the rejection region(s), 

(c) Find the standardized test statistic x2

(d) Decide whether to reject or fail to reject the null hypothesis, and 

(e) Interpret the decision in the context of the original claim. Assume the population is normally distributed.

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