Question

f) Suppose that North Valley Real Estate employs several agents. Each agent will be randomly
assigned twenty homes to sell. The agents are highly motivated to sell homes based on the
commissions they earn. They are also concerned about the twenty homes they are assigned to
sell. Using the confidence intervals you created, write a general memo informing the agents
about the characteristics of the homes they may be assigned to sell.
g) What would you do if your confidence intervals did not include the mean of all 105 homes? How
could this happen?
h) Adam Marty recently joined North Valley Real Estate and was assigned twenty homes to market
and show. When he was hired, North Valley assured him that the twenty homes would be fairly
assigned to him. When he reviewed the selling prices of his assigned homes, he thought that the
prices were much below the average of $357,000. Adam was able to find the data of how the
other agents in the firm were assigned to the homes. Use statistical inference to analyze the
“fairness” that homes were assigned to the agents.

Population Mean	357026,4667
Population Standard Deviation	159933,0647
Sample Mean for Price	338077,0000
Sample Standard Deviation for Price	86557,4060
Z Score	-0,118483734
P	0,547157809
Likelihood of sample mean price this high or this higher is 0,547157809
Sample Mean for Price	365422
Sample Standard Deviation For Price	180959,636
n	20
Alpha	0,05
Alpha/2	0,025
Standard Error	40463,80473
Defree of Freedom	19
tstat	2,093024054
ME	84691,71662
Lower Limit	280730
Upper Limit	450114
Confidence Interval is between	280730 - 450114
Sample Mean for Market	28
Sample Standard Deviation for Market	11,92476415
n	20
Alpha	0,05
Alpha/2	0,025
Standard Error	2,666458325
Degree of Freedom	19
tstat	2,093024054
Margin of Error	5,580961415
Lower Limit	22
Upper Limit	33
Confidence interval is between 22 and 33
Sample Proportion Mean	0,7
Standard Error	0,102469508
n	20
Alpha	0,05
Alpha/2	0,025
Degree of Freedom	19
T Statistic	2,093024054
Margin of Error	0,214471144
Lower Limit	0,485528856
Upper Limit	0,914471144
Confidence Interval is between 0,485528856 and 0,485528856

Answer 1

g)

H)

Step 1:

Step 2:

Step 3: