SOLUTION: Suppose that a random sample of nineteen recently sold houses in a certain city has a mean sales price of $300,000 , with a standard deviation of $8000 . Under the assumption that
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Question 469320: Suppose that a random sample of nineteen recently sold houses in a certain city has a mean sales price of $300,000 , with a standard deviation of $8000 . Under the assumption that house prices are normally distributed, find a 95% confidence interval for the mean sales price of all houses in this community.
What is the lower limit of confidence level?
What is the upper limit of confidence level?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose that a random sample of nineteen recently sold houses in a certain city has a mean sales price of $300,000 , with a standard deviation of $8000 . Under the assumption that house prices are normally distributed, find a 95% confidence interval for the mean sales price of all houses in this community.
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x-bar = 300,000
ME = 1.96*8000/sqrt(19) = 3597.24
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95% CI: 300,000-ME < u < 300,000+ME
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95% CI: 296,402.76 < u < 303,597.24
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Cheers,
Stan H.
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What is the lower limit of confidence level?
What is the upper limit of confidence level?
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