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

question 2

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 population proportion of houses that will be appraised for higher than the market prices?

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Definitions:

Residuals

The differences between observed values and the estimated values of a regression model.

Histogram

A graphical representation of the distribution of numerical data using bars to show the frequency of data intervals.

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A highly acclaimed American singer and actor known for his contributions to Latin and salsa music.

Residuals

The differences between observed and predicted values in a regression analysis.