Question
Beatrice is graduating from Clemson this semester and has received two job offers, one in Atlanta and one in Charlotte. To help her decide where
Beatrice is graduating from Clemson this semester and has received two job offers, one in Atlanta
and one in Charlotte. To help her decide where to move, she would like to estimate the difference in
average home prices for these two cities. From a random sample of 40 listings in Atlanta the average
home price is $185,000 and from a random sample of 40 listings in Charlotte the average home price
is $190,000. She finds that the margin of error for a 95% confidence interval for the difference in
average home price between the two cities is $3,250. Which of the following conclusions is correct?
(A)
Beatrice can be 95% confident that the average home price is between $1,750 and $8,250 higher
in Atlanta than in Charlotte.
(B)
Beatrice can be 95% confident that the average home price is between $1,750 and $8,250 lower
in Atlanta than in Charlotte.
(C)
Beatrice can be 95% confident that the average home price is $5,000 lower in Atlanta than in
Charlotte.
(D)
Beatrice can be 95% confident that there is not a significant difference in the average home price
between these two cities.
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