Recently, six single-family homes in San Luis Obispo County in California sold a

Question

Recently, six single-family homes in San Luis Obispo County in California sold at the following prices (in $1,000s): 678, 615, 723, 582, 759, 891.

a.

Construct the 90% confidence interval for the mean sale price in San Luis Obispo County. (Round intermediate calculations to 4 decimal places, "sample mean" and "sample standard deviation" to 2 decimal places. Round "t" value to 3 decimal places and final answers to 2 decimal places.)

    Confidence interval

to thousands  

b.

What assumption have you made when constructing this confidence interval?

Recently, six single-family homes in San Luis Obispo County in California sold at the following prices (in $1,000s): 678, 615, 723, 582, 759, 891.

Explanation / Answer

a. Here mean =708 and sd=111.12

t value for 90% CI for n=6 is 2.015

E=t*sd/sqrt(n)=91.41

CI=mean+/-E=708+/-91.41=(616.59,799.41)

b. Here we have assumed distribution to be t as n size is small

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