Answer:
a. Assume that the population has a normal distribution.
b. The 90% confidence interval of the mean sale time for all homes in the neighborhood is between 219.31 days and 240.69 days.
Step-by-step explanation:
Question a:
We have to assume normality.
Question b:
We have that to find our [tex]\alpha[/tex] level, that is the subtraction of 1 by the confidence interval divided by 2. So:
[tex]\alpha = \frac{1 - 0.9}{2} = 0.05[/tex]
Now, we have to find z in the Ztable as such z has a pvalue of [tex]1 - \alpha[/tex].
That is z with a pvalue of [tex]1 - 0.05 = 0.95[/tex], so Z = 1.645.
Now, find the margin of error M as such
[tex]M = z\frac{\sigma}{\sqrt{n}}[/tex]
In which [tex]\sigma[/tex] is the standard deviation of the population and n is the size of the sample.
[tex]M = 1.645\frac{35}{\sqrt{29}} = 10.69[/tex]
The lower end of the interval is the sample mean subtracted by M. So it is 230 - 10.69 = 219.31 days.
The upper end of the interval is the sample mean added to M. So it is 230 + 10.69 = 240.69 days.
The 90% confidence interval of the mean sale time for all homes in the neighborhood is between 219.31 days and 240.69 days.
