Investors buy a studio apartment for $150,000. Of this amount, they have a down payment of
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Answer:
The 95% confidence interval would be given by (29.780;32.020)
Step-by-step explanation:
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".
represent the sample mean for the sample
population mean (variable of interest)
s=7.5 represent the sample standard deviation
n=174 represent the sample size
The confidence interval for the mean is given by the following formula:
(1)
In order to calculate the critical value we need to find first the degrees of freedom, given by:
Since the Confidence is 0.95 or 95%, the value of and
, and we can use excel, a calculator or a tabel to find the critical value. The excel command would be: "=-T.INV(0.025,173)".And we see that
, this value is similar to the obtained with the normal standard distribution since the sample size is large to approximate the t distribution with the normal distribution.
Now we have everything in order to replace into formula (1):
So on this case the 95% confidence interval would be given by (29.780;32.020)
The value 29.6 is not contained on the interval calculated.