Hypothesis Test 2:
Do airport car rental agencies charge lower rates, on average, in San Francisco than in San Jose?
Conduct a test of this question with a 3% level of significance.

.
The table shows weekly car rental rates
in San Francisco and San Jose for a sample of rental companies and car types.
For each company/car size combination in the sample, the rates are shown for both cities.

The sample rates in the table were quoted
on Travel: Airfares, hotels, vacations, cruises, car rentals and more at Travelocity.com on 11/27/2007
for rentals at airport rental outlets
for the week 12/1–12/8/2007.

We will use this data as a sample of the population of all models of cars available for rent from all airport car rental agencies in San Francisco and San Jose.

Using a 3% level of significance, perform a hypothesis test to determine if airport car rental agencies charge lower rates, on average, in San Francisco than in San Jose.

Company
Car Size

Alamo
economy

Avis
economy

Budget
economy

Dollar
economy

Enterprise
compact

Hertz
compact

National
compact

Thrifty
compact

Alamo
mid

Dollar
mid

Hertz
mid

Budget
mid

Avis
full

Enterprise
full

National
full

Thrifty
full
.
Answer the following questions. Your answers must be typed out in between each question.

1. Identify and define the parameter.
-µsf-µsj
2. Identify and define the random variable.
- x bar sf- x bar sj

3. What distribution will you use? Explain why.

4. Circle the correct type of test: Two-tailed Right-Tailed Left-Tailed

5. Write the hypotheses:
Ho: __µsf≥µsj_______________________ Ha: ____µsf<µsj_________________________

6. What calculator software instruction will you use after STAT – TEST? ______________________________

7. Identify the symbol and value of your test-statistic: ______________________________

8. Find the p-value: ______________________________

9. Write a sentence that clearly explains the meaning of the p-value in the context of this problem.




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