1. Charles is considering purchasing a yearling at an elite Thoroughbred yearlin
ID: 3066256 • Letter: 1
Question
1. Charles is considering purchasing a yearling at an elite Thoroughbred yearling sale. To get an idea of the what horses at this sale sell for, he randomly samples previous years' sales figures and constructs a confidence interval for mean sale price. He knows, however, that sale price is not normally distributed because a handful of the prices are very high, skewing the distribution from the normal bell curve. Will the confidence interval he constructed still give a good estimate of the mean yearling sale price? Why or why not?
2. A cattle breed registry is interested in estimating the proportion of members who would favor a calf registration app for their smart devices. Based on a random sample of 250 members, a 99% confidence interval is obtained for the population proportion and is 0.114 < p < 0.168. Can we use this to say there is a 99% chance that the true value of p lies within this interval?
Explanation / Answer
a) I don't think the confidence interval he constructed still give a good estimate of the mean yearling sale price because assumption of Normality would be violated
b) Yes,this is the definition of Confidence Interval.
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