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 25 houses that sold in their neighborhood took an average time of 200 days to sell. The realtor also tells them that based on her prior experience, the population standard deviation is 50 days. Use Table 1.

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

Construct a 99% 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.)

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 25 houses that sold in their neighborhood took an average time of 200 days to sell. The realtor also tells them that based on her prior experience, the population standard deviation is 50 days. Use Table 1.

Explanation / Answer

a) Since the population standard deviation is given, we must assume that the population has a normal distribution.

Option B is correct.

b) The statistical software output for this problem is:

One sample Z confidence interval:
: Mean of population
Standard deviation = 50

99% confidence interval results:

Hence,

Confidence interval:

174.24 to 225.76

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

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