# 8.4 Confidence interval (home costs)

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## 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.

#### Questions & Answers

what is standard deviation?
Jawed Reply
It is the measure of the variation of certain values from the Mean (Center) of a frequency distribution of sample values for a particular Variable.
Dominic
Yeah....the simplest one
IRFAN
what is the number of x
Godgift Reply
10
Elicia
Javed Arif
Jawed
how will you know if a group of data set is a sample or population
Kingsley Reply
population is the whole set and the sample is the subset of population.
umair
if the data set is drawn out of a larger set it is a sample and if it is itself the whole complete set it can be treated as population.
Bhavika
hello everyone if I have the data set which contains measurements of each part during 10 years, may I say that it's the population or it's still a sample because it doesn't contain my measurements in the future? thanks
Alexander
Pls I hv a problem on t test is there anyone who can help?
Peggy
What's your problem Peggy Abang
Dominic
Bhavika is right
Dominic
what is the problem peggy?
Bhavika
hi
Sandeep
Hello
adeagbo
hi
Bhavika
hii Bhavika
Dar
Hi eny population has a special definition. if that data set had all of characteristics of definition, that is population. otherwise that is a sample
Hoshyar
three coins are tossed. find the probability of no head
Kanwal Reply
three coins are tossed consecutively or what ?
umair
p(getting no head)=1/8
umair
or .125 is the probability of getting no head when 3 coins are tossed
umair
🤣🤣🤣
Simone
what is two tailed test
Umar Reply
if the diameter will be greater than 3 cm then the bullet will not fit in the barrel of the gun so you are bothered for both the sides.
umair
in this test you are worried on both the ends
umair
lets say you are designing a bullet for thw gun od diameter equals 3cm.if the diameter of the bullet is less than 3 cm then you wont be able to shoot it
umair
In order to apply weddles rule for numerical integration what is minimum number of ordinates
Anjali Reply
excuse me?
Gabriel
why?
Tade
didn't understand the question though.
Gabriel
which question? ?
Tade
We have rules of numerical integration like Trapezoidal rule, Simpson's 1/3 and 3/8 rules, Boole's rule and Weddle rule for n =1,2,3,4 and 6 but for n=5?
John
geometric mean of two numbers 4 and 16 is:
iphone Reply
10
umair
really
iphone
quartile deviation of 8 8 8 is:
iphone
sorry 8 is the geometric mean of 4,16
umair
quartile deviation of 8 8 8 is
iphone
can you please expalin the whole question ?
umair
mcq
iphone
h
iphone
can you please post the picture of that ?
umair
how
iphone
hello
John
10 now
John
how to find out the value
srijth Reply
can you be more specific ?
umair
yes
KrishnaReddy
what is the difference between inferential and descriptive statistics
Eze Reply
descriptive statistics gives you the result on the the data like you can calculate various things like variance,mean,median etc. however, inferential stats is involved in prediction of future trends using the previous stored data.
umair
if you need more help i am up for the help.
umair
Thanks a lot
Anjali
Inferential Statistics involves drawing conclusions on a population based on analysis of a sample. Descriptive statistics summarises or describes your current data as numerical calculations or graphs.
fred
my pleasure😊. Helping others offers me satisfaction 😊
umair
for poisson distribution mean............variance.
mehul Reply
both are equal to mu
Faizan
mean=variance
Faizan
what is a variable
Bonolo Reply
something that changes
Festus
why we only calculate 4 moment of mean? asked in papers.
Faizan Reply
why we only 4 moment of mean ? asked in BA exam
Faizan
Good evening, can you please help me by sharing regression and correlation analysis notes....thank you in advance
Refiloe Reply
Hello, can you please share the possible questions that are likely to be examined under the topic: regression and correlation analysis.
Refiloe
for normal distribution mean is 2 & variance is 4 find mu 4?
Faizan Reply
repeat quastion again
Yusuf
find mu 4. it can be wrong but want to prove how.
Faizan
for a normal distribution if mu 4 is 12 then find mu 3?
Faizan Reply
Question hi wrong ha
Tahir
ye BA mcqs me aya he teen he. 2dafa aya he
Faizan
if X is normally distributed. (n,b). then its mean deviation is?
Faizan
The answer is zero, because all odd ordered central moments of a normal distribution are Zero.
nikita
which question is zero
Faizan
sorry it is (5,16) in place of (n,b)
Faizan
I got. thanks. it is zero.
Faizan
a random variable having binomial distribution is?
Bokaho

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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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