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
San Francisco
San Jose

Alamo
economy
238
257

Avis
economy
258
277

Budget
economy
238
257

Dollar
economy
99
170

Enterprise
compact
88
172

Hertz
compact
267
278

National
compact
257
268

Thrifty
compact
99
172

Alamo
mid
261
281

Dollar
mid
95
173

Hertz
mid
281
301

Budget
mid
261
281

Avis
full
317
321

Enterprise
full
105
174

National
full
307
312

Thrifty
full
109
174
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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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