TABLE 7-3 The Mean Selling Price of New Homes in a Small

question 46

Short Answer

TABLE 7-3
The mean selling price of new homes in a small town over a year was $115,000. The population standard deviation was $25,000. A random sample of 100 new home sales from this city was taken.
-Referring to Table 7-3, what is the probability that the sample mean selling price was more than $110,000?

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Definitions:

Population Variance

A measure that quantifies the spread of a set of data points in a population, calculated as the average of the squared differences from the Mean.

Confidence Interval

A spectrum of numbers resulting from sample measurements, which is thought to cover the value of an unidentified population feature.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how spread out the data points are from the mean.

Chi-squared Distribution

A statistical distribution that is used to describe the distribution of a sum of squared random variables, often used in hypothesis testing.