TABLE 12-7
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below. At the 0.05 level of significance,you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-True or False: Referring to Table 12-7,the null hypothesis will be rejected.

Question

TABLE 12-7
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below.  At the 0.05 level of significance,you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-True or False: Referring to Table 12-7,the null hypothesis will be rejected.

Quizplus · Accepted Answer

The question asks if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities. To test this, we would conduct a chi-square test of independence. Looking at the table, we can see that the expected frequencies (calculated assuming the null hypothesis is true) are all greater than 5, so the conditions for the chi-square test are met. When we conduct the test, we get a chi-square statistic of 15.45 and a p-value of 0.00044. This p-value is less than 0.05, so we reject the null hypothesis and conclude that there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities. Therefore, the answer is A.

TABLE 12-7 Data on the Percentage of 200 Hotels in Each of Each