Suppose that a random sample of nineteen recently sold houses in a certain city

Question

Suppose that a random sample of nineteen recently sold houses in a certain city has a mean sales price of $280,000, with a standard deviation of $10,000. Under the assumption that house prices are normally distributed, find a 95% confidence interval for the mean sales price of all houses in this community. Then complete the table below Carry your intermediate computations to at least three decimal places. Round your answers to the nearest whole number (If necessary, consult a list of formulas.) What is the lower limit of the confidence interval? What is the upper limit of the confidence interval?

Explanation / Answer

Ans:

Given that

mean=280,000

standard deviation=10000

sample size,n=19

df=19-1=18

critical t value=tinv(0.05,18)=2.101

95% confidence interval for mean

=280,000+/-2.101*10000/sqrt(19)

=280,000+/-4820

=(275180, 284820)

lower limit=275180

upper limit=284820

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.