SCENARIO 8-17 A Wealthy Real Estate Investor Wants to Decide Whether It

question 226

Short Answer

SCENARIO 8-17
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 Scenario 8-17,if he wants a 95% confidence on estimating the true population mean market price of the houses in the suburban county to be within $10,000,how large a sample will he need?

---

Definitions:

Spouse's Partner

Typically refers to an individual who is in a committed relationship or marriage with another person; it can also imply situations of polyamory or non-monogamous relationships.

Adult Children

Individuals who are legally adults, typically over the age of 18, considered in relation to their parents or parental figures.

Household Labor

Tasks and chores undertaken in managing the functioning of a household, including cleaning, cooking, and maintenance.

Therapy

A process designed to help individuals understand and manage their thoughts, behaviors, and emotions, often involving structured conversations with a trained professional.