Question

Imagine that a friend of yours who lives in the area is preparing to sell a Ford Mustang and they ask you to help them determine a selling price. Please write a message that starts with “Dear friend,” and includes two or more sentences that include the following: the selling price you recommend, some background as to how this StatKey exercise helped you come up with that price, any additional information you would like to have from your friend about the car that might lead you to change your recommend price number, and some advice to your friend as to where they could look for more information about pricing the car.

Answer 1

Dear friend,

The selling price of a Ford Mustang should be around $15988. Although the variation in the prices can be within $22000 of $15988. Thus, if the car has a price outside this range, then it is not reliable.

The StatKey output is:

Statkey Confidence Interval for a Mean, Median, Std. Dev. Mustang Price (Price) Show Data Table Edit Data Upload File Change Column(s) Generate 1 Sample Generate 10 Samples Generate 100 Samples Generate 1000 Samples Reset Plot Bootstrap Dotplot of Mean - Original Sample n = 25, mean = 15.98 median = 11.9, stdev = 11.114 100 Left Tail Two-Tail Right Tail samples = 5000 mean = 15.988 std. error = 2.202 30 20 80 10 60 40 10 20 30 15.98 Bootstrap Sample Show Data Table n = 25, mean = 15.648 median = 10, stdev = 11.691 0.025 0.950 0.025 40 30 20 20 10 : 0 0 10 14 18 20 22 24 26 10 30 40 15.988 15.648 20 11.944 20.516