(Solved): Data for hotel room rates (in Australian dollars) of the top 20 tourism destinations in the State of ...

Data for hotel room rates (in Australian dollars) of the top 20 tourism destinations in the State of New South Wales (NSW) and Queensland (QLD) were compared to examine which state has a higher average room rate (ARR) charged for one night. The result of the analysis is shown in the SPSS output below.

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You are required to answer the following:

a) Explain which statistical test is appropriate to examine whether there is a difference in the average room rate between the two states. (3 marks)

b) Write the null and alternative hypotheses. (6 marks)

c) Should you reject the null hypothesis based on the 0.05 significance level? Provide the statistical and non-statistical interpretation of the result of this analysis.