A family is relocating from St. Louis, Missouri, to California. Due to an increa

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 the market. They ask their realtor friend for help and she informs them that the last 18 houses that sold in their neighborhood took an average time of 190 days to sell. The realtor also tells them that based on her prior experience, the population standard deviation is 30 days. Use Table 1. a. What assumption regarding the population is necessary for making an interval estimate of the population mean? Assume that the central limit theorem applies. Assume that the population has a normal distribution. b. Construct a 99% confidence interval of the mean sale time for all homes in the neighborhood. (Round your intermediate calculations to 4 decimal places, "z" value and final answers to 2 decimal places.)

Explanation / Answer

here std error =std deviation/(n)1/2 =7.071

and for 99% CI, z=2.5758

hence confidence interval =sample mean -/+ z*std error =171.79 ; 208.21

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