The Franzes are purchasing a home for $195,000, and they are using a conventional loan. What is the best estimate for what their
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Answer:
The answer is below
Step-by-step explanation:
From the table, the mean (μ) = 1390.75 and the standard deviation (σ) = 518.75
The confidence level (C) = 90% = 0.9
α = 1 - C = 1 - 0.9 = 0.1
α/2 = 0.1 / 2 = 0.05
The z score of α/2 (0.05) is the same as the z score of 0.45 (0.5 - 0.05) which is equal to 1.645.
The margin of error (E) is given as:
The confidence interval = μ ± E = 1390.75 ± 228.07 = (1162.68, 1618.82)
The confidence interval is between 1162.68 and 1618.82.