Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 46 bids from potential buyers

image text in transcribed
The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 46 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $8126 with a standard deviation of $1501. Complete parts (a) through (c) below. a) What assumptions and conditions must be checked before finding a confidence interval? How would one check them? O A. The data are assumed to be independent and to have a sample size that is large enough to have a sampling distribution that is approximately Normal. Check the independence assumption with the Randomization Condition. Check the sample size assumption by ensuring that there are at least 10 "successes" and 10 "failures." O B. The data are assumed to be independent and from a Normal population. Check the independence assumption with the Nearly Normal Condition using a histogram. Check the Normal population assumption with the Randomization Condition. O C. The data are assumed to be dependent and to have a sample size that is large enough to have a sampling distribution that is approximately Normal. Check the independence assumption by ensuring that there are at least 10 "successes" and 10 "failures." O D. The data are assumed to be independent and from a Normal population. Check the independence assumption with the Randomization Condition. Check the Normal population assumption with the Nearly Normal Condition using a histogram. b) Find a 95% confidence interval for the mean loss in value per home. (Round to the nearest whole number as needed.) c) Interpret this interval and explain what 95% confidence means in this context. Choose the correct answer below. O A. There is a 95% chance that the true average loss in home value of the homes sampled is between the lower boundary of the interval and the upper boundary of the interval. O B. One is 95% confident that the true average loss in home value is between the lower boundary of the interval and the upper boundary of the interval. O C. There is a 95% chance that the average true loss in home value is between the lower boundary of the interval and the upper boundary of the interval. O D. One is 95% confident that the true average loss in home value of the homes sampled is between the lower boundary of the interval and the upper boundary of the interval. Click to select your answer(s)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Informed Decisions Using Data

Authors: Michael Sullivan

5th Global Edition

1292157119, 978-1292157115

Students also viewed these Mathematics questions

Question

=+a) Is this an observational or experimental study?

Answered: 1 week ago