Question

A family is relocating from St. Louis, Missouri, to California. Due to an increasing inventory of houses in St. Louis, it is taking longer than before to sell a house. The wife is concerned and wants to know when it is optimal to put their house on the market. Her realtor friend informs them that the last 29 houses that sold in their neighborhood took an average time of 230 days to sell. The realtor also tells them that based on her prior experience, the population standard deviation is 35 days. Construct the 90% confidence interval for the mean sale time for all homes in the neighborhood.

Answer 1

90% confidence interval for is

- Z * / sqrt(n) < < + Z * / sqrt(n)

230 - 1.645 * 35 / sqrt(29) < < 230 + 1.645 * 35 / sqrt(29)

219.3086 < < 240.6914

90% CI is (219.3086 , 240.6914 )