House prices. An article posted by the Canadian Visa Organization regarding the cost of living in Canada in 2021 stated that Canadians spend most of their salary on paying house rent or housing mortgage. Economists predict that home prices across Canada will drop by 7% due to COVID-19 in 2021. Suppose a random sample of 15 houses in Toronto had an average price of $850,000 and a standard deviation of $5,000.

a. Use a 90% confidence interval to estimate the population mean of the house price in Toronto in 2021.

b. Interpret the interval in terms of this application.

c. What is meant by the phrase “90% confidence interval”?