Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The table below contains samples of prices for rooms in Atlanta and Houston that are consistent with aSmartMoney survey conducted by Smith Travel Research. Because considerable historical data on the prices of rooms in both cities are available, the population standard deviations for the prices can be assumed to be in Atlanta and in Houston.
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