In Order to Estimate the Difference Between the Average Mortgages

question 26

Short Answer

In order to estimate the difference between the average mortgages in the southern and the northern states of the United States, the following information was gathered.
$\begin{array}{lcc}&\text { South }&\text { North }\\\text { Sample Size } & 40 & 45 \\\text { Sample Mean in } \$ 1,000) & \$ 170 & \$ 175 \\\text { Sample Standard Deviation in } \$ 1,000) & \$ 5 & \$ 7\end{array}$
a. Compute the degrees of freedom for the t distribution.
b. Develop an interval estimate for the difference between the average of the mortgages in the South and North. Let Alpha = 0.03.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Subjective Feel

An individual's personal and emotional response or perception towards something.

Profit-oriented Pricing

A pricing strategy aimed at maximizing profit by considering factors such as production costs, consumer demand, and competitive prices.