Question

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.

Which form of the hypotheses should be used to test the manager’s claim –upper tail, lower tail or two-tailed?

Answer 1

The hypotheses should be used to test the manager’s claim:

`H_0: \mu \leq 600`

`H_a: \mu > 600`

Upper tail.

Explanation:

Consider the provided information.

The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is $600 or less.

If there is no statistical significance in the test then it is know as the null which is denoted by
`H_0`, otherwise it is known as alternative hypothesis which denoted by
`H_a`.

`H_0` : The mean guest bill for a weekend is less than or equal to $600.
`H_0: \mu \leq 600`

`H_a` : The mean guest bill for a weekend is greater than $600.
`H_a: \mu > 600`

If
`H_a : \mu > \mu_0` then upper tail.

Hence, it is upper tail.