TABLE 12-20
Data on the Percentage of 200 Hotels in Each

question 144

Short Answer

TABLE 12-20
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below.
$\begin{array}{cccc} \hline& \text { Hong Kong } & \text { New York } & \text { Paris } \\\hline\text { Yes } & 86 \% & 76 \% & 78 \% \\\text { No } & 14 \% & 24 \% & 22 \%\\\hline\end{array}$
At the 0.05 level of significance, you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-Referring to Table 12-20, what are the values of the absolute difference and the critical range for the Marascuilo procedure to test for the difference in proportions between Hong Kong and New York using a 0.05 level of significance?

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Definitions:

Annuity

A financial instrument that provides a consistent flow of payments to a person, mainly serving as a source of income for people in retirement.

Equal Cash Flow

A scenario in which cash inflows or outflows are the same in each period.

Internal Rate of Return Method

A capital budgeting method that calculates the return on investment by setting the net present value of cash flows equal to zero.

Present Value

Today's worth of a forthcoming sum of money or series of cash payments, considering a designated rate of return.