Question

An important factor in selling a residential property is the number of times real estate agents show a home. A sample of 15 homes recently sold in the Buffalo, New York, area revealed the mean number of times a home was shown was 23 and the standard deviation of the sample was 6 people. Develop a 99% confidence interval for the population mean.

Answer 1

Solution :

The 99% confidence interval for population mean is given as follows :

Where, x̅ is sample mean, s is sample standard deviation, n is sample size and t_{(0.01/2, n - 1)} is critical t value to construct 99% confidence interval.

We have,  x̅ = 23, s = 6, n = 15

Using t-table we get, t_{(0.01/2, 15 - 1)} = 2.977

Hence, 99% confidence interval for the population mean is,

The 99% confidence interval for the population mean is (18.388, 27.612).

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