You want to rent an unfurnished one-bedroom apartment in Boston next year. The mean monthly rent for a simple random sample of 30 apartments advertised in the local newspaper is $1,450. The standard deviation of the population is $220. Find a 99% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in this community.
Accepted Solution
A:
Answer: 99% confidence interval would be [tex](1346.37,1553.63)[/tex]Step-by-step explanation:Since we have given that Sample size = 30Sample mean = $1450Standard deviation = $220We need to find the 99% confidence interval.So, z = 2.58So, confidence interval would be [tex]\bar{x}\pm z\dfrac{\sigma}{\sqrt{n}}\\\\=1450\pm 2.58\times \dfrac{220}{\sqrt{30}}\\\\=1450\pm 103.63\\\\=(1450-103.63,1450+103.63)\\\\=(1346.37,1553.63)[/tex]Hence, 99% confidence interval would be [tex](1346.37,1553.63)[/tex]