Question

An important factor in selling a residential property is the number of people who look through the home. A sample of 17 homes recently sold in the Buffalo, New York, area revealed the mean number looking through each home was 19 and the standard deviation of the sample was 4 people.
Develop a 98 percent confidence interval for the population mean. (Round your answers to 2 decimal places.)
Confidence interval for the population mean is between and ?

Answer 1

Answer:

Confidence interval for the population mean is between 15 homes and 19 homes

Step-by-step explanation:

Given that:

Sample (n) = 17 homes, mean (μ) = 19 homes, standard deviation (σ)= 4 people and confidence (C) = 98% = 0.98

α = 1 - C = 1 - 0.98 = 0.02

α/2 = 0.02/2 = 0.01.

The z score of 0.01 (α/2) corresponds to the z score of 0.49 (0.5 - 0.01) which from the normal distribution table is 2.33

The margin of error (E) is:

$E=z_{0.01}*\frac{\sigma}{\sqrt{n} } =2.33*\frac{4}{\sqrt{19} }=2$

The confidence interval = μ ± E = 17 ± 2 = (15, 19)

Confidence interval for the population mean is between 15 homes and 19 homes