One researcher took a random sample of size 10 and estimated a 95 percent confidence interval for
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One researcher took a random sample of size 10 and estimated a 95 percent confidence interval for the average home price in an area to be $180,000 ± $40,000; another researcher took a random sample of size 20 and obtained a 95 percent confidence interval of $200,000 ± $30,000.
a. How would you use both of these studies to obtain a 95 percent confidence interval of a ± b? (You do not need to do any calculations; simply explain how you would proceed.)
b. Explain why you think that the value of a is larger than, smaller than, or equal to $190,000.
c. Explain why you think that the value of b is larger than, smaller than, or equal to $30,000.
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Related Book For
Essential Statistics Regression And Econometrics
ISBN: 9780123822215
1st Edition
Authors: Gary Smith
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