The average cost per night of a hotel room in New York City is
$278 (SmartMoney, March 2009). Assume this estimate is
based on a sample of 45 hotels and that the sample standard
deviation is $65.
a. With 95% confidence, what is the margin of
error? Round your answer to the nearest dollar.
$
b. What is the 95% confidence interval estimate
of the population mean? Round your answers to the nearest
dollar.
to
c. Two years ago the average cost of a hotel
room in New York City was $229. Discuss the change in cost over the
two-year period.
