This question refers to the dataset HomesForSale, which has data on houses avail

Question

This question refers to the dataset HomesForSale, which has data on houses available for sale in three Mid-Atlantic states (NY, NJ, and PA) as well as California (CA). Table 1 has summary statistics for each of the four states, with prices given in thousands of dollars. (Since n = 30 , we ask you to use the t -distribution here despite the fact that the data are quite skewed. In practice, we might have enough concern about the skewness to choose to use bootstrap methods instead.) Find a 95% confidence interval for the mean price of a home in California. Click here for the dataset associated with this question. Round your answers to the nearest integer. The 95% confidence interval is thousand to thousand.

Explanation / Answer

The 95% c.i=xc bar+-tcritical SE(xc bar), where, xc bar denotes mean price of hom ein California, t critical denotes t critical value at df=29 and alpha=0.05 and SE (xc bar) denotes standard error of mean.

SE(xc bar)=sc/sqrt n, where sc denotes standard deviation of housing price at California, and n denotes number of houses.

95% c.i=715.1+-2.045(1112.3/sqrt 30)

=300 to 1130

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