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An Apartment Complex Developer Is Considering Building Apartments in College σ\sigma

question 66

Essay

An apartment complex developer is considering building apartments in College Town, but first wants to do a market study. A sample of monthly rent values ($) for studio apartments in College Town was taken. The data collected from the 70-apartment sample is presented below. (Based on past experience, the developer assumes a known value of σ\sigma = $55 for the population standard deviation.)
a. Develop a 98% confidence interval for the mean monthly rent for all studio apartments in this city.
b. Suppose the apartment developer wants a 98% confidence interval estimate of the population mean with a margin of error of E = $10. How large a sample size is needed?


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