A hotel chain is interested in evaluating processes. Guests can reserve a room by using either a telephone system or an online system that is accessed through the hotel's web site. Independent random samples of 80 guests who reserved a room by phone and 60 guests who reserved a room online were selected. Of those who reserved by phone, 57 reported that they were satisfied with the reservation process. Of those who reserved online, 50 reported that they were satisfied. Based on the data, is it reasonable to conclude that the proportion who are satisfied is greater for those who reserve a room online? Test the appropriate hypotheses using a 5% significance level.

1 answer

Have cells indicating satisfied/dissatisfied for each group. Calculate column, row and grand totals.

Use the Chi-square (X^2) method.

X^2 = ∑ (O-E)^2/E, where O = observed frequency and E = expected frequency.

∑ = sum of all the cells.

E = (column total * row total)/grand total

df = n - 1, where n = number of cells

Look up value in X^2 table in the back of your textbook.