9) You are interested in purchasing a new car. One of the many points you wish t

Question

9) You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of
the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the
resale value of this car with a 98% confidence interval. You manage to obtain data on 17 recently resold
5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $12,530 with a
standard deviation of $700. Suppose that the interval is calculated to be ($12,091.47, $12,968.53). How could we
alter the sample size and the confidence level in order to guarantee a decrease in the width of the interval?

Explanation / Answer

Increase the sample size and/or lower the confidence coefficient to

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