You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 95% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $13,800 with a standard deviation of $600. a. Create a 95% confidence interval for the true mean resale value of a 5-year-old car of that model.
b. Interpret the 95% confidence interval obtained in part a.
c. What assumption is required for the interval, part a, to be valid? Suppose you wanted to estimate a binomial proportion, p, correct to within 0.03 with probability 0.90. What size sample would need to be selected if p is known to be approximately 0.65?
You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 95% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $13,800 with a standard deviation of $600. a. Create a 95% confidence interval for the true mean resale value of a 5-year-old car of that model. b. Interpret the 95% confidence interval obtained in part a. c. What assumption is required for the interval, part a, to be valid? Suppose you wanted to estimate a binomial proportion, p, correct to within 0.03 with probability 0.90. What size sample would need to be selected if p is known to be approximately 0.65?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 9PPS
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You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 95% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $13,800 with a standard deviation of $600.
- a. Create a 95% confidence interval for the true
mean resale value of a 5-year-old car of that model. - b. Interpret the 95% confidence interval obtained in part a.
- c. What assumption is required for the interval, part a, to be valid?
Suppose you wanted to estimate a binomial proportion, p, correct to within 0.03 with probability 0.90. What size sample would need to be selected if p is known to be approximately 0.65?
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