Question

A reporter for a student newspaper is writing an article on the cost of off-campus housing. A sample was selected of 10 one-bedroom units within a half-mile of campus and the rents paid. The sample mean is $550 and the sample standard deviation is $60.05. Provide a 95% confidence interval estimate of the mean rent per month for the population of one-bedroom units within a half-mile of campus. Assume that population is normally distributed.

Answer 1

Answer:

(507.05, 592.95)

Step-by-step explanation:

Given data:

sample mean = $550, sample standard deviation S = $60.05

95% confidence interval , n = 10

For 95% confidence interval for the mean

mean ± M.E.

where M.E. is margin of error = $t_{n-1}, \alpha/2\times\frac{S}{\sqrt{n} }$

Substituting the values in above equation

$=t_{10-1}, 0.05/2\times\frac{60.05}{\sqrt{10} }$

= 2.62×18.99

=42.955

= 550±42.95

=(507.05, 592.95)