Question

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 $468. 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 µ paid in the previous month on all 10,000 occupied rental units in this town

Answer 1

The 95% confidence interval for average rent paid in previous month on all 10,000 occupied rental units in this town is 430.81 to 505.19