For the following 5 questions: You want to rent an unfurnished one-bedroom apart
ID: 3222782 • Letter: F
Question
For the following 5 questions: You want to rent an unfurnished one-bedroom apartment in Milwaukee WI next year. The mean monthly rent for a random sample of 60 apartments advertised on Craig's List (a website that lists apartments for rent) is $1,000. Assume a population standard deviation of $200. You would like to construct a 95% confidence interval for u. What is the appropriate z score to use? What is the 95% confidence interval for this problem? How would we interpret the above result? To what population of apartments can you appropriately infer to from this sample? Evaluate the following statement: The population mean is a random variable that will fall within a confidence interval with 95% probability (with repeated sampling).
Explanation / Answer
here std error =std deviaiton/(n)1/2 =25.82
for 95% CI, z=1.96
hence confidence interval =,sample mean -/+ z*std error =949.3939 ; 1050.6061
aabove interval gives 95% probabilty to contain true population mean of monthly rent.
The population mean is a random variable that will fall within a confidence interval with 95% probability (with repeated sampling).: this statement is equivalent to our interpretation of confidence interval