TABLE 8-18 A Wealthy Real Estate Investor Wants to Decide Whether It

question 9

Short Answer

TABLE 8-18
A wealthy real estate investor wants to decide whether it is a good investment to build a high-end shopping complex in a suburban county in Chicago.His main concern is the total market value of the 3,605 houses in the suburban county.He commissioned a statistical consulting group to take a sample of 200 houses and obtained a sample mean market price of $225,000 and a sample standard deviation of $38,700.The consulting group also found out that the mean differences between market prices and appraised prices was $125,000 with a standard deviation of $3,400.Also the proportion of houses in the sample that are appraised for higher than the market prices is 0.24.
-Referring to Table 8-18,what will be the 90% confidence interval for the mean market price of the houses in the suburban county constructed by the consulting group?

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by triggering the fight-or-flight response during stressful situations.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and lowering the body's metabolic rate, often referred to as the "rest and digest" system.

Somatic

Pertaining to the body, as opposed to the mind.

Parietal Lobes

The lobes that contain the somatosensory cortex (where touch, pressure, temperature, and pain register) and other areas that are responsible for body awareness and spatial orientation.