A family is relocating from St. Louis, Missouri, to California. Due to an increa

Question

A family is relocating from St. Louis, Missouri, to California. Due to an increasing inventory of houses in St. Louis, it is taking longer than before to sell a house. The wife is concerned and wants to know when it is optimal to put their house on the market. They ask their realtor friend for help and she informs them that the last 14 houses that sold in their neighborhood took an average time of 145 days to sell. The realtor also tells them that based on her prior experience, the population standard deviation is 25 days. Use Table 1.

a. What assumption regarding the population is necessary for making an interval estimate for the population mean?

O Assume that the central limit theorem applies.

OAssume that the population has a normal distribution.

b. Construct a 95% confidence interval for the mean sale time for all homes in the neighborhood. (Round intermediate calculations to 4 decimal places, "z" value and final answer to 2 decimal places.) Confidence interval ________ to ________

Explanation / Answer

I think this is a trick question. "when it is optimal" - That has no meaning. The answer to the question would be the optimal time to sell the house. But I've never heard of such a thing.

First, does optimal time mean the time when the house will sell the quickest. Or does it mean the time when the house will sell for the most.

Second, that's just not possible. There is no way to TIME the selling of a house.

Third, statistic only tell you what HAS happened. Statistics can NOT tell you what will happen. In this example, you can look at all the data you want, but it will never tell you when the house will sell.

The only way this question would make sense is if the word "optimal" has some statistical meaning that I'm not aware of.

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