Question

In: Statistics and Probability

According to a recent survey, a random sample of 100 homes sold in the Baton Rouge...

According to a recent survey, a random sample of 100 homes sold in the Baton Rouge metro area had an average sale price of $263,000. If the population standard deviation of home prices is $20,000, what is the 99% confidence interval of the true population average sales price for homes sold in Baton Rouge?

Solutions

Expert Solution

Solution :

Given that,

Point estimate = sample mean = = $263000

Population standard deviation =    = $20000
Sample size = n =100

At 99% confidence level the z is ,

  = 1 - 99% = 1 - 0.99 = 0.01

/ 2 = 0.01 / 2 = 0.005

Z/2 = Z0.005 = 2.576   ( Using z table )

Margin of error = E = Z/2* ( /n)

=2.576 * ( 20000/ 100)

= 5152

At 99% confidence interval estimate of the population mean is,

- E < < + E

263000- 5152< <263000+ 5152

257848< < 268152

(257848, 268152)

orchestra answered 3 years ago
Next > < Previous

Related Solutions

According to a recent survey, a random sample of 100 homes sold in the Baton Rouge...
According to a recent survey, a random sample of 100 homes sold in the Baton Rouge metro area had an average sale price of $263,000. If the population standard deviation of home prices is $30,000, what is the 90% confidence interval of the true population average sales price for homes sold in Baton Rouge? Select one: (258065, 267935) (259160, 266840) (255275, 270725) (257120, 268880) none of these are correct
Let a random sample of 100 homes sold yields a sample mean sale price of $100,000...
Let a random sample of 100 homes sold yields a sample mean sale price of $100,000 and a sample standard deviation of $5,000. Find a 99% confidence interval for the average sale price given the information provided above. Calculate the following: 1) Margin of error = Answer 2) x̄ ± margin error = Answer < μ < Answer Table1 - Common Z-values for confidence intervals Confidence Level Zα/2 90% 1.645 95% 1.96 99% 2.58
According to a recent survey of the 23​,000 funeral homes of a certain​ nation, funeral homes...
According to a recent survey of the 23​,000 funeral homes of a certain​ nation, funeral homes collected an average of ​$6,500 per​ full-service funeral last year. A random sample of 36 funeral homes reported revenue data for the current year. Among other​ measures, each reported its average fee for a​ full-service funeral. These data​ (in thousands of​ dollars) are shown in the accompanying table. Complete parts a through c below. b. Conduct the test at α=0.05 Do the sample data...
In one​ community, a random sample of 2727 foreclosed homes sold for an average of ​$440...
In one​ community, a random sample of 2727 foreclosed homes sold for an average of ​$440 comma 396440,396 with a standard deviation of ​$196 comma 981196,981. ​a) What assumptions and conditions must be checked before finding a confidence interval for the​ mean? How would you check​ them? ​b) Find a 9999​% confidence interval for the mean value per home. ​c) Interpret this interval and explain what 9999​% confidence means. ​d) Suppose​ nationally, the average foreclosed home sold for ​$389 comma...
In a recent survey of homes in a major Midwestern city, 30% of the homes have...
In a recent survey of homes in a major Midwestern city, 30% of the homes have a fax machine and 75% have a personal computer. Suppose 15% of the homes have both a fax machine and a personal computer. What is the probability that a randomly selected home does not have a fax machine or does not have a personal computer?
In a recent survey of homes in a major Midwestern city, 10% of the homes have...
In a recent survey of homes in a major Midwestern city, 10% of the homes have a fax machine and 55% have a personal computer. Suppose 7% of the homes with a fax machine also have a personal computer. What is the probability that a home has a fax machine or a personal computer?
Mimi conducted a survey on a random sample of 100 adults. 58 adults in the sample...
Mimi conducted a survey on a random sample of 100 adults. 58 adults in the sample chose banana as his / her favorite fruit. Construct a 95% confidence interval estimate of the proportion of adults whose favorite fruit is banana. Show all work. Just the answer, without supporting work, will receive no credit.
A random sample of 9 recently sold homes in a local market collects the list price...
A random sample of 9 recently sold homes in a local market collects the list price and selling price for each house. The prices are listed below in thousands of dollars. A group of realtors wants to test the claim that houses are selling for more than the list price. List Price 490 275 289 349 460 499 325 380 299 Sell Price 485 275 280 360 465 490 340 395 315 (a) Find d¯, the mean of the differences....
At a recent concert, a survey was conducted that asked a random sample of 20 people...
At a recent concert, a survey was conducted that asked a random sample of 20 people their age and how many concerts they have attended since the beginning of the year. The following data were collected: Age 62 57 40 49 67 54 43 65 54 41 # of Concerts 6 5 4 3 5 5 2 6 3 1 Age 44 48 55 60 59 63 69 40 38 52 # of Concerts 3 2 4 5 4 5...
In a recent survey of drinking laws, a random sample of 1000 women showed that 65%...
In a recent survey of drinking laws, a random sample of 1000 women showed that 65% were in favor of increasing the legal drinking age. In a random sample of 1000 men , 60% favored increasing the legal drinking age. Test the hypothesis that the percentage of women favoring a higher legal drinking age is greater than the percentage of men. Use a= 0.05 Call women population 1 and men population 2 A) What initial conclusion would be reached in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT