Question

you want to rent an unfurnished one-bedroom apartment for next semester. the mean monthy rent for a random sample of 45 apartments advertised in the local newspaper is $775. assume the standard deviation is $110. find a formula used to generate the 98% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in this community.

Answer 1

Formula:

98% Confidence Interval = (Mean - (2*Standard Deviation/√n), Mean + (2*Standard Deviation/√n))

98% Confidence Interval = ($775 - (2*$110/√45), $775 + (2*$110/√45))

98% Confidence Interval = ($735.56, $814.44)