The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 36 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss from the peak in 2008 was $9,560 with a standard deviation of $1500.
a) What assumptions and conditions must be checked before finding a confidence interval? How would you check them?
b) Find a 95% confidence interval for the mean loss in value per home.
c) Interpret this interval and explain what 95% confidence means in this context.