Stine and Foster Question 16-43 Hotel Chain Stine and Foster Question 16-43

Problem Statement The management of a chain of hotels avoids intervening in the local management of its franchises unless problems become far too common to ignore. Management believes that solving the problems is better left to the local staff unless the measure of satisfaction drops below 33%. A survey of 80 guests who recently stayed in the franchise in St. Louis found that only 20% of the guests indicated that they would return to that hotel when next visiting the city. Should management intervene in the franchise in St. Louis?

Steps Determine Specify Sample Form Conclude Determine the conditions in which no action will be taken Specify Specify the null hypothesis Specify the alternative hypothesis Sample Sample and then use the resulting data to estimate the parameter of interest Form Form a test statistics Determine the p-value of the test statistic Conclude Conclude with the course of action