Question

Student Edition of Statistix 10.0 Apartment Data.xlsx, 5/25/2020, 8:39:12 PM

Descriptive Statistics

   Rent   Size
N   75   75
Lo 94% CI   1486.0   1290.7
Mean   1836.5   1405.6
Up 94% CI   2187.0   1520.5
SD   1589.2   520.97
Minimum   795.00   818.00
Median   1400.0   1227.0
Maximum   13322   2914.0

1. For your Price variable, interpret the standard deviation by giving me a range in which you think “most” of the values (i.e., the x’s) will fall. (Hint: you will need to do some math here) (3 points)

2. Find the 94% confidence interval for estimating the mean mileage or size of your data set (2 points)

3. Give a practical interpretation for the interval specified in part b. (4 points)

d. Explain what you mean when you say that you are "94% confident in the practical interpretation above in part c.

e. What assumptions is/are necessary for this analysis to be valid? Make sure you state your answers in the words of the problem.  

Answer 1

(a) The range will be between (1836 - 2*1589.2, 1836 + 2*1589.2).

(-1342.4, 5014.4)

(b) The 94% confidence interval for estimating the mean mileage or size is between 1290.7 and 1520.5.

(c) We are 94% confident that the true mean mileage or size is between 1290.7 and 1520.5.

(d) 94% confidence means that out of 100 times, the mean value falls in the confidence interval 94 times.

(e) The data follow the normal probability distribution.

The sample is a simple random sample from its population.

Each individual in the population has an equal probability of being selected in the sample.