Question

You are doing some research on the cost of one bedroom apartments in town. Based on prices from previous years, a real estate agent gives you the information that σ is approximately $55 and μ is approximately 675 per month . Assume that price follows roughly a normal distribution. You have randomly selected 25 apartments for which the price was published. The average price for these apartments is ?̅=695. You are to construct a 95 percent interval estimation for μ

a. What is/are the critical value(s)?

b. What is th e standard error?

c. What is the margin of error?

d. Construct the interval.

e. Can we still say that ?=675?

Answer 1