Question

A real estate agent needs to estimate the average value of a residential property of a given size in a certain area. The real estate agent believes that the standard deviation of the property values is

Answer 1

Answer:

Follows are the solution to this question:

Step-by-step explanation:

$95 \%$ the confidence level for z:

$\alpha = 1 - 95 \%$

   $= 1 - 0.95 \\\\ = 0.05$

$\to \frac{\alpha}{2} = \frac{0.05}{2} = 0.025\\\\\\to Z \ \frac{\alpha}{2} = Z_{0.025} = 1.96$

Calculating the Margin of error:

$E = Z\ \frac{\alpha}{2} \times ( \frac{\sigma}{\sqrt{n}})$

   $= 1.96 \times ( \frac{5000}{\sqrt{\sqrt{100}}})\\\\= 980$

The population means estimate a 95 % confidence interval is:

$\to \bar{x} \frac{+}{-} E\\\\ = \ 90000 \frac{+}{-} 980$