Mathematics, 03.12.2019 06:31 Spiderblack212

You want to rent an unfurnished one-bedroom apartment in boston next year. the mean monthly rent for a random sample of 10 apartments advertised in the local newspaper is $2534. assume that the standard deviation is $670. find the 90%, 95%, and 99% confidence intervals for the mean monthly rent for this category of apartments. look at the 95% confidence interval and say whether the following statement is true or false. "this interval describes the price of 95% of the rents of all the unfurnished one-bedroom apartments in the boston area." be sure to explain your answer.

Answers: 1

Show answers

Answers

Answer from: thibeauxkristy

90% confidence interval: (2186.53;2881.47)

95% confidence interval: (2118.73;2949.27)

99% confidence interval: (1987.37;3080.63)

For the last part is not the best way say : "This interval describes the price of 95% of the rents of all the unfurnished one-bedroom apartments in the Boston area."

The best interpretation is this one: "We are 95% confident that the actual mean for the rents of unfurnished one-bedroom apartments in the Boston area is between (2118.73;2949.27)"

Step-by-step explanation:

1) Previous concepts

A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".

The margin of error is the range of values below and above the sample statistic in a confidence interval.

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

$\bar X=2534$ represent the sample mean

$\mu$ population mean (variable of interest)

$\sigma=670$ represent the population standard deviation

n=10 represent the sample size

90% confidence interval

The confidence interval for the mean is given by the following formula:

$\bar X \pm z_{\alpha/2}\frac{\sigma}{\sqrt{n}}$ (1)

Since the Confidence is 0.90 or 90%, the value of $\alpha=0.1$ and $\alpha/2 =0.05$ , and we can use excel, a calculator or a tabel to find the critical value. The excel command would be: "=-NORM.INV(0.05,0,1)".And we see that $z_{\alpha/2}=1.64$

Now we have everything in order to replace into formula (1):

$2534-1.64\frac{670}{\sqrt{10}}=2186.53$

$2534+1.64\frac{670}{\sqrt{10}}=2881.47$

So on this case the 90% confidence interval would be given by (2186.53;2881.47)

95% confidence interval

The confidence interval for the mean is given by the following formula:

$\bar X \pm z_{\alpha/2}\frac{\sigma}{\sqrt{n}}$ (1)

Since the Confidence is 0.95 or 95%, the value of $\alpha=0.05$ and $\alpha/2 =0.025$ , and we can use excel, a calculator or a tabel to find the critical value. The excel command would be: "=-NORM.INV(0.025,0,1)".And we see that $z_{\alpha/2}=1.96$

Now we have everything in order to replace into formula (1):

$2534-1.96\frac{670}{\sqrt{10}}=2118.73$

$2534+1.96\frac{670}{\sqrt{10}}=2949.27$

So on this case the 95% confidence interval would be given by (2118.73;2949.27)

99% confidence interval

The confidence interval for the mean is given by the following formula:

$\bar X \pm z_{\alpha/2}\frac{\sigma}{\sqrt{n}}$ (1)

Since the Confidence is 0.99 or 99%, the value of $\alpha=0.01$ and $\alpha/2 =0.005$ , and we can use excel, a calculator or a tabel to find the critical value. The excel command would be: "=-NORM.INV(0.005,0,1)".And we see that $z_{\alpha/2}=2.58$

Now we have everything in order to replace into formula (1):

$2534-2.58\frac{670}{\sqrt{10}}=1987.37$

$2534+2.58\frac{670}{\sqrt{10}}=3080.63$

So on this case the 99% confidence interval would be given by (1987.37;3080.63)

For the last part is not the best way say : "This interval describes the price of 95% of the rents of all the unfurnished one-bedroom apartments in the Boston area."

The best interpretation is this one: "We are 95% confident that the actual mean for the rents of unfurnished one-bedroom apartments in the Boston area is between (2118.73;2949.27)"

Answer from: Quest

step-by-step explanation:

Answer from: Quest

This does not make sense

Another question on Mathematics

Mathematics, 21.06.2019 16:40

Which recursive formula can be used to determine the total amount of money earned in any year based on the amount earned in the previous year? f(n+1)=f(n)+5

Answers: 1

Answer

Mathematics, 21.06.2019 16:50

Suppose that the price p (in dollars) and the weekly sales x (in thousands of units) of a certain commodity satisfy the demand equation 4p cubedplusx squaredequals38 comma 400. determine the rate at which sales are changing at a time when xequals80, pequals20, and the price is falling at the rate of $.20 per week.

Answers: 3

Answer

Mathematics, 21.06.2019 18:30

Complex numbers multiply √-4 * √-25 and show all intermediate steps. alternative notation is sqrt(-4) * sqrt(-25).

Answers: 1

Answer

Mathematics, 21.06.2019 23:50

Which statement explains how you could use coordinate geometry to prove the opposite sides of a quadrilateral are congruent? a. use the slope formula to prove the slopes of the opposite sides are the same. b. use the slope formula to prove the slopes of the opposite sides are opposite reciprocals. c. use the distance formula to prove the lengths of the opposite sides are the same. d. use the distance formula to prove the midpoints of the opposite sides are the same.

Answers: 3

Answer

You know the right answer?

You want to rent an unfurnished one-bedroom apartment in boston next year. the mean monthly rent for...

Questions

Mathematics, 17.03.2020 02:55

A triangle has side cequals6 and angles equals startfraction pi over 4 endfraction and equals startfraction pi over 3 endfraction . find the length a...