The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 36 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $9,560 with a standard deviation of $1,500. A 90% confidence interval is found using StatCrunch as below: (a) What is the point estimate of the mean loss in home value of the entire housing market? (b) What is the degree of freedom associated with the critical t-value for constructing the confidence interval? (c) Find the critical t-value for constructing the 90% confidence interval for this problem. (d) Determine the margin of error for this 90% confidence interval. (e) Interpret this confidence interval within the context. One sample T summary confidence interval: μ : Mean of population 90% confidence interval results: MeanSample MeanStd. Err.DFL. Limit U. Limit μ 9560 250 35 9137.60699982.3931
The housing market has recovered slowly from the economic crisis of 2008.
Recently, in one large community, realtors randomly sampled 36 bids from potential buyers to estimate the
average loss in home value. The sample showed the average loss was $9,560 with a standard deviation of
$1,500. A 90% confidence interval is found using StatCrunch as below:
(a) What is the point estimate of the mean loss in home value of the entire housing market?
(b) What is the degree of freedom associated with the critical t-value for constructing the
confidence interval?
(c) Find the critical t-value for constructing the 90% confidence interval for this problem.
(d) Determine the margin of error for this 90% confidence interval.
(e) Interpret this confidence interval within the context.
One sample T summary confidence interval:
μ : Mean of population
90% confidence interval results:
MeanSample MeanStd. Err.DFL. Limit U. Limit
μ 9560 250 35 9137.60699982.3931
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