One tract of land contains 25 acres. An adjoining tract of land is 1 square mile. The owners agreed to sell for $1,500 per acre.
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Answer:
Step-by-step explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The population proportion have the following distribution
Solution to the problem
We assume for this case a confidence level of 95%. In order to find the critical value we need to take in count that we are finding the interval for a proportion, so on this case we need to use the z distribution. Since our interval is at 95% of confidence, our significance level would be given by and
. And the critical value would be given by:
The confidence interval for the mean is given by the following formula:
The margin of error for the proportion interval is given by this formula:
(a)
And if we replace the values obtained we got this: