Suppose you take a random sample of 1,000 homes in San Diego. You find that the average home price in your sample has increased 45.4% with a standard deviation of s = 1.7% since 1999. You want to estimate the average home increase in San Diego with a fairly small risk of error, so you set alpha as 0.01. This means you can be confident that increase in home prices in San Diego will be the confidence interval appropriate for this alphain this case, 45.4% 0.1%