# 8.4 Confidence interval (home costs)

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Class Time:

Names:

## Student learning outcomes

• The student will calculate the 90% confidence interval for the mean cost of a home in the area in which this school is located.
• The student will interpret confidence intervals.
• The student will determine the effects of changing conditions on the confidence interval.

## Collect the data

Check the Real Estate section in your local newspaper. Record the sale prices for 35 randomly selected homes recently listed in the county.

## Note

Many newspapers list them only one day per week. Also, we will assume that homes come up for sale randomly.

1. Complete the table:
 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

## Describe the data

1. Compute the following:
1. $\overline{x}$ = _____
2. ${s}_{x}$ = _____
3. n = _____
2. In words, define the random variable $\overline{X}$ .
3. State the estimated distribution to use. Use both words and symbols.

## Find the confidence interval

1. Calculate the confidence interval and the error bound.
1. Confidence Interval: _____
2. Error Bound: _____
2. How much area is in both tails (combined)? α = _____
3. How much area is in each tail? $\frac{\alpha }{2}$ = _____
4. Fill in the blanks on the graph with the area in each section. Then, fill in the number line with the upper and lower limits of the confidence interval and the sample mean.
5. Some students think that a 90% confidence interval contains 90% of the data. Use the list of data on the first page and count how many of the data values lie within the confidence interval. What percent is this? Is this percent close to 90%? Explain why this percent should or should not be close to 90%.

## Describe the confidence interval

1. In two to three complete sentences, explain what a confidence interval means (in general), as if you were talking to someone who has not taken statistics.
2. In one to two complete sentences, explain what this confidence interval means for this particular study.

## Use the data to construct confidence intervals

1. Using the given information, construct a confidence interval for each confidence level given.
Confidence level EBM/Error Bound Confidence Interval
50%
80%
95%
99%
2. What happens to the EBM as the confidence level increases? Does the width of the confidence interval increase or decrease? Explain why this happens.

I don't get the example
ways of collecting data at least 10 and explain
Example of discrete variable
Gbenga
I am new here, can I get someone to guide up?
alayo
dies outcome is 1, 2, 3, 4, 5, 6 nothing come outside of it. it is an example of discrete variable
jainesh
continue variable is any value value between 0 to 1 it could be 4digit values eg 0.1, 0.21, 0.13, 0.623, 0.32
jainesh
hi
Kachalla
what's up here ... am new here
Kachalla
sorry question a bit unclear...do you mean how do you analyze quantitative data? If yes, it depends on the specific question(s) you set in the beginning as well as on the data you collected. So the method of data analysis will be dependent on the data collecter and questions asked.
Bheka
how to solve for degree of freedom
saliou
Quantitative data is the data in numeric form. For eg: Income of persons asked is 10,000. This data is quantitative data on the other hand data collected for either make or female is qualitative data.
Rohan
*male
Rohan
Degree of freedom is the unconditionality. For example if you have total number of observations n, and you have to calculate variance, obviously you will need mean for that. Here mean is a condition, without which you cannot calculate variance. Therefore degree of freedom for variance will be n-1.
Rohan
data that is best presented in categories like haircolor, food taste (good, bad, fair, terrible) constitutes qualitative data
Bheka
vegetation types (grasslands, forests etc) qualitative data
Bheka
I don't understand how you solved it can you teach me
solve what?
Ambo
mean
Vanarith
What is the end points of a confidence interval called?
lower and upper endpoints
Bheka
Class members write down the average time (in hours, to the nearest half-hour) they sleep per night.
how we make a classes of this(170.3,173.9,171.3,182.3,177.3,178.3,174.175.3)
Sarbaz
6.5
phoenix
11
Shakir
7.5
Ron
why is always lower class bundry used
Caleb
Assume you are in a class where quizzes are 20% of your grade, homework is 20%, exam _1 is 15%,exam _2 is 15%, and the final exam is 20%.Suppose you are in the fifth week and you just found out that you scored a 58/63 on the fist exam. You also know that you received 6/9,8/10,9/9 on the first
quizzes as well as a 9/11,10/10,and 4.5/7 on the first three homework assignment. what is your current grade in the course?
Diamatu
Abdul
if putting y=3x examine that correlation coefficient between x and y=3x is 1.
what is permutation
how to construct a histogram
You have to plot the class midpoint and the frequency
Wydny
ok so you use those two to draw the histogram right.
Amford
yes
Wydny
ok can i be a friend so you can be teaching me small small
Amford
how do you calculate cost effectiveness?
George
Hi everyone, this is a very good statistical group and am glad to be part of it. I'm just not sure how did I end up here cos this discussion just popes on my screen so if I wanna ask something in the future, how will I find you?
Bheka
To make a histogram, follow these steps: On the vertical axis, place frequencies. Label this axis "Frequency". On the horizontal axis, place the lower value of each interval. ... Draw a bar extending from the lower value of each interval to the lower value of the next interval.
Divya
I really appreciate that
I want to test linear regression data such as maintenance fees vs house size. Can I use R square, F test to test the relationship? Is the good condition of R square greater than 0.5
yes of course must have use f test and also use t test individually multple coefficients
rishi
Alright
umar
hi frnd I'm akeem by name, I wanna study economics and statistics wat ar d thing I must do to b a great economist
akeem
Is R square cannot analysis linear regression of X vs Y relationship?
Mok
To be an economist you have to be professional in maths
umar
hi frnds
Shehu
what is random sampling what is sample error
@Nistha Kashyap Random sampling is the selection of random items (or random numbers) from the group. A sample error occurs when the selected samples do not truely represent the whole group. The can happen when most or all of the selected samples are taken from only one section of the group;
Ron
Thus the sample is not truely random.
Ron
What is zero sum game?
A game in which there is no profit & no loss to any of the both player.
Milan