C17.4: . The sample showed the average loss was ​$8601 with a standard deviation of ​$1405

Question

The housing market has recovered slowly from the economic crisis of 2008.​ Recently, in one large​ community, realtors randomly sampled 48 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was ​$8601 with a standard deviation of ​$1405.

​b) Find a 90​% confidence interval for the mean loss in value per home.

​($___​, $___​)

​(Round to the nearest whole number as​ needed.)

Answer 1

Since the sample size is large, we can compute the confidence interval using the critical z value for a 90% confidence interval: 1.645.

CI = mean +- z-critical * standard deviation/square root(sample size)

mean is 8601, standard deviation is 1405 and sample size is 48.