GBA 210 Project 3 (Protected View) - Word ayout References ternet can contain vi

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GBA 210 Project 3 (Protected View) - Word ayout References ternet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Mailings Review View Soda PDF Creator ell me what you want to do I would like to know what the average cost of a home is. To do so, I randomly select 15 home owners and ask them the cost of their home. The average cost of the 15 homes was $76000 with a standard deviation of $5000. a. What is a point estimate of the population mean 3. b, what critical value would you use for a 95% confidence interval of the mean cost ofa home in St. Joseph? Explain why Name: c. Construct your 95% confidence interval

Explanation / Answer

Point estimate x bar=average cost =$67000

Here Confidence inerval is 95%, The critical value of z is term linked to the area under the standard normal model. Critical values can tell you what probability any particular variable will have.

Central area = 0.95

tail area=0.05

Central region: The z-score is equal to the number of standard deviations from the mean. A score of 1.96 indicates that the variable is 1.96 standard deviations from the mean. If you look in the z-table for a z of 1.96, you’ll find the area is .975. This is the region to the right of the mean, so you’ll double it to get the area of the entire central region: .975*2 = 1.96 or about 95% percent.

Using Minitab:

One-Sample Z

The assumed standard deviation = 5000

N Mean SE Mean 95% CI
15 76000 1291 (73470, 78530)

Hope this will be helpful. Thanksa nd God Bless you ;-)

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