Confidence Intervals
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d) Compute a 99% confidence interval for the mean of taxes.
e) Compute a 95% confidence interval for the mean of taxes.
f) Compute a 90% confidence interval for the mean of taxes.
g) What happens to the confidence interval for the mean of taxes as we change the confidence level?
2. Using the data for home selling prices attached, test a realtor’s claim that the average age of all homes in the area from which the random sample is drawn from is less than 30 years. Assume the distribution of ages of homes follow an approximately normal distribution.
Show all the seven steps and include the p-value.
3. Using the data set for Homes attached, use the selling prices and the list prices of the homes sold to test the claim that the housing market is so hot that there is no difference between selling prices and list prices. Use a .05 significance level.
Be sure to identify all the seven steps and to state your conclusion in the context of the problem.
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