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 13 houses that sold in
their neighborhood took an average time of 45 days to sell. The
realtor also tells them that based on her prior experience, the
population standard deviation is 5 days. [You may find it
useful to reference the z table.]
a. What assumption regarding the population is
necessary for making an interval estimate for the population
mean?
Assume that the central limit theorem applies.
Assume that the population has a normal distribution.
b. Construct the 95% confidence interval for the
mean sale time for all homes in the neighborhood. (Round
intermediate calculations to at least 4 decimal places. Round
"z" value to 3 decimal places and final answers to 2
decimal places.)
Get Answers For Free
Most questions answered within 1 hours.