A family is relocating from St. Louis Missouri to california Due to an increasin

Question

A family is relocating from St. Louis Missouri to california Due to an increasing inventory of houses in St. Louis . it is taking longer than before to sell a house. The wife is concerned and wants to know when it is optimal to put their house on th market. Her realtor friend informs them that the last 23 houses sold in their neighborhood took and average time of 165 days to sell. The realtor also tells them that based on her experience the population standard deviation is 82 days a. what assumprionreguarding the population is nessecary for making an interval estimate for the population mean? a. assume the population has a normal distribution b. assume thatthe central limit therom applies   

b. Construct the 99% confidence interval for the mean sale time for all homes in the neighborhood

Explanation / Answer

a) We assume the population has a normal distribution

b)

Z = (x-u)/(s/sqrt(n))

We have, u = 165, s =82, n =23

Z value for 99% confidence interval = +-2.58

Thus, Range is

u - z *s/sqrt(n) to u + z *s/sqrt(n)

165 – 2.58(82)/sqrt(23) to 165 + 2.58(82)/sqrt(23)

120.89 to 209.11

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