A real estate agent needs to estimate the average value of a residential property of a given size in a certain area. The real estate agent believes that the standard deviation of the property values...

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A real estate agent needs to estimate the average value of a residential property of a given size in a certain area. The real estate agent believes that the standard deviation of the property values is σ = $5,500.00 and that property values are approximately normally distributed. A random sample of 16 units gives a sample mean of $89,673.12. Give a 95% confidence interval for the average value of all properties of this kind.




Answered Same DayDec 25, 2021

Answer To: A real estate agent needs to estimate the average value of a residential property of a given size in...

Robert answered on Dec 25 2021
119 Votes
The  1 100% confidence interval for the population mean is given by
/2 /2,x z x zn n 
 
  
 
as the standard deviation of the population is given and it
follows normal distribution.
Here  0.02589673.12, 5500.00 , 16, 0.05 , 1.96 normal tablex n z      ...
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