Assignment Instructions/ Description
Image transcription text4. (Two parts; 8 marks in total) A business survey randomly sampled 20 different hotels and 20 different log
cabins in British Columbia and recorded each of their nightly rates. A natural log transformation was needed
in order for the data to satisfy the assumptions for the t-tools. The table below gives the summary statistics
for the natural logs of nightly rates.
LnNightlyRate
Type
Mean
N
Std. Deviation
Hotel rates
4.6152
20
.14510
Log cabin rates
5.6555
20
18008
Total
5.1353
40
55099
(a) (6 marks) Calculate the 90% confidence interval for the difference in mean logged nightly rates between
hotels and log cabins (SHOW ALL STEPS). Back transform this confidence interval to the original scale and
interpret this interval on the original scale.
(b) (2 marks) Based on the confidence interval you found in part (a), after back transformation, would you
conclude that there is a difference between the median rates for hotels and log cabins (with 90%
confidence)? Explain the logic of your answer.... Show more4. (Two parts; 8 marks in total) A business survey randomly sampled 20 different hotels and 20 different log
cabins in British Columbia and recorded each of their nightly rates. A natural log transformation was needed
in order for the data to satisfy the assumptions for the t-tools. The table below gives the summary statistics
for the natural logs of nightly rates.
LnNightlyRate
Type
Mean
N
Std. Deviation
Hotel rates
4.6152
20
.14510
Log cabin rates
5.6555
20
18008
Total
5.1353
40
55099
(a) (6 marks) Calculate the 90% confidence interval for the difference in mean logged nightly rates between
hotels and log cabins (SHOW ALL STEPS). Back transform this confidence interval to the original scale and
interpret this interval on the original scale.
(b) (2 marks) Based on the confidence interval you found in part (a), after back transformation, would you
conclude that there is a difference between the median rates for hotels and log cabins (with 90%
confidence)? Explain the logic of your answer.