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An agent for a real estate company in a suburb has the business objective of developing more accurate estimates of the monthly rental cost for apartments. The agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent collects data from a sample of 30 one-bedroom apartments. Complete parts (a) through (c). Click the icon to view the data table. a. Construct a 95% confidence interval estimate of the mean monthly rental for all one-bedroom apartments that are 786 square feet in size (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) b. Construct a 95% prediction interval of the monthly rental for an individual one-bedroom apartment that is 786 square feet in size. (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) c. Explain the differences in the results from (a) and (b). O A. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is wider than the confidence interval, holding everything else fixed. OB. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is narrower than the confidence interval, holding everything else fixed. OC. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is narrower than the prediction interval, holding everything else fixed. OD. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is wider than the prediction interval, holding everything else fixed.

An agent for a real estate company in a suburb has the business objective of developing more accurate estimates of the monthly rental cost for apartments. The agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent collects data from a sample of 30 one-bedroom apartments. Complete parts (a) through (c). Click the icon to view the data table. a. Construct a 95% confidence interval estimate of the mean monthly rental for all one-bedroom apartments that are 786 square feet in size (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) b. Construct a 95% prediction interval of the monthly rental for an individual one-bedroom apartment that is 786 square feet in size. (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) c. Explain the differences in the results from (a) and (b). O A. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is wider than the confidence interval, holding everything else fixed. OB. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is narrower than the confidence interval, holding everything else fixed. OC. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is narrower than the prediction interval, holding everything else fixed. OD. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is wider than the prediction interval, holding everything else fixed.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 1GP
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Apartment Size (sq feet) Rent ($) 1 530 1114 2 622 1170 653 1176 4 824 1420 449 1195 6 544 1216 7 767 1489 8 826 1504 9 1070 1511 10 603 1668 11 832 1795 12 652 1637 13 598 1453 14 663 1403 15 747 1148 16 828 1144 17 899 1226 18 636 1424 19 648 1534 20 830 1099 21 807 1139 22 817 1248 23 933 1447 24 799 1164 25 777 1229 26 948 1381 27 764 1158 28 686 1093 29 842 1365 30 836 1536
Transcribed Image Text:Apartment Size (sq feet) Rent ($) 1 530 1114 2 622 1170 653 1176 4 824 1420 449 1195 6 544 1216 7 767 1489 8 826 1504 9 1070 1511 10 603 1668 11 832 1795 12 652 1637 13 598 1453 14 663 1403 15 747 1148 16 828 1144 17 899 1226 18 636 1424 19 648 1534 20 830 1099 21 807 1139 22 817 1248 23 933 1447 24 799 1164 25 777 1229 26 948 1381 27 764 1158 28 686 1093 29 842 1365 30 836 1536
An agent for a real estate company in a suburb has the business objective of developing more accurate estimates of the monthly rental cost for apartments. The agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent collects data from a sample of 30 one-bedroom apartments. Complete parts (a) through (c). Click the icon to view the data table. ..... a. Construct a 95% confidence interval estimate of the mean monthly rental for all one-bedroom apartments that are 786 square feet in size. = 786 (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) b. Construct a 95% prediction interval of the monthly rental for an individual one-bedroom apartment that is 786 square feet in size. sYx=78 (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) c. Explain the differences in the results from (a) and (b). A. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is wider than the confidence interval, holding everything else fixed. B. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is narrower than the confidence interval, holding everything else fixed. C. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is narrower than the prediction interval, holding everything else fixed. D. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is wider than the prediction interval, holding everything else fixed.
Transcribed Image Text:An agent for a real estate company in a suburb has the business objective of developing more accurate estimates of the monthly rental cost for apartments. The agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent collects data from a sample of 30 one-bedroom apartments. Complete parts (a) through (c). Click the icon to view the data table. ..... a. Construct a 95% confidence interval estimate of the mean monthly rental for all one-bedroom apartments that are 786 square feet in size. = 786 (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) b. Construct a 95% prediction interval of the monthly rental for an individual one-bedroom apartment that is 786 square feet in size. sYx=78 (Type integers or decimals. Round to two decimal places as needed. Use ascending order.) c. Explain the differences in the results from (a) and (b). A. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is wider than the confidence interval, holding everything else fixed. B. Since there is more variation in predicting an individual value than in estimating a mean value, the prediction interval is narrower than the confidence interval, holding everything else fixed. C. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is narrower than the prediction interval, holding everything else fixed. D. Since there is more variation in estimating a mean value than in predicting an individual value, the confidence interval is wider than the prediction interval, holding everything else fixed.
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