The housing market has recovered slowly from the economic crisis of 2008. Recent
ID: 3055059 • Letter: T
Question
The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 37 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $9697 with a standard deviation of $1772. Complete parts (a) through (c) below. a) What assumptions and conditions must be checked before finding a confidence interval? How would one check them? o A. The data are assumed to be independent and from a Normal population. Check the independence assumption with the Nearly Normal Condition using a histogram. Check the Normal population assumption with the Randomization Condition independence assumption by ensuring that there are at least 10 "successes" and 10 "failures." Normal population assumption with the Nearly Normal Condition using a histogram the independence assumption with the Randomization Condition. Check the sample size assumption by ensuring that there are at least 10 "successes" and 10 B. The data are assumed to be dependent and to have a sample size that is large enough to have a sampling distribution that is approximately Normal. Check the (y C. The data are assumed to be independent and from a Normal population. Check the independence assumption with the Randomization Condition. Check the D. The data are assumed to be independent and to have a sample size that is large enough to have a sampling distribution that is approximately Normal. Check "failures." b) Find a 99% confidence interval for the mean loss in value per home (Round to the nearest whole number as needed.)Explanation / Answer
CI fo = 99%
n = 37
mean = 9697
z-value of 99% CI = 2.5758
std. dev. = 1772
SE = std.dev./sqrt(n)
= 1772/sqrt(37)
= 291.31501
ME = z*SE
= 2.5758 * 291.31501
= 750.37773
Lower Limit = Mean - ME
= 9697 - 750.37773
= 8946.62227
Upper Limit = Mean + ME
= 9697 - 750.37773
= 10447.37773
99% CI (8947 , 10447)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.