TABLE 8-2 A Wealthy Real Estate Investor Wants to Decide Whether It

question 105

Short Answer

TABLE 8-2
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 near 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 8-2, what will be the 90% confidence interval for the mean market price of the houses in the suburban county constructed by the consulting group?

---

Definitions:

Periodic Table

A tabular arrangement of chemical elements organized by increasing atomic number, where elements with similar properties are grouped in columns.

Sulfides

Chemical compounds that contain sulfur in the negative oxidation state, often associated with mineral deposits and pollution.

Periodic Table

A tabular arrangement of chemical elements, ordered by their atomic number, electron configuration, and recurring chemical properties.

Nonmetals

Elements that lack metallic properties and are typically poor conductors of heat and electricity.