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

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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 total difference between the market prices and appraised prices of the houses in the suburban county constructed by the consulting group?


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Napoleon Bonaparte, a French military leader and emperor who rose to prominence during the French Revolution and significantly altered European political landscapes.

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