Question

1. A certain town has 10,000 Occupied rental units. A local real estate office does a survey of these units: 250 are chosen at random, and the occupants are interviewed about their rent paid in the previous month. The 250 sample rents have an average of $168. Assume the standard deviation of rent in this town is known to be $300 and that rents in this town are normally distributed. Find a 95% confidence interval for the average rent paid in the previous month on all 10,000 occupied rental units in this town.

Answer 1

Confidence interval calculation for total population.

Given that Population Size (N) = 10,000 Sample size (n = 250 Sample average CX) = $468 Sample Standard deviation (S) = $ 300 Data is normally distributed 95% confidence interval for total population. for 95% confidence Critical value (Z) = 1.26 * → . we know * J25 confidence Interval - XN I N* Zas* (for total population) (300) ..= (468*10000) E (10000*196) * = 4680000 + C 19600) * (18.97366) = 4680000 £ 371983.852 = (4308116 1148, 5051883-852) w (4308116 , 5051884) ..95%Confidence interval for population average rent s previous monthi = (4308116, 5051884).