Point estimation of the mean price of all homes

Reference no: EM1386380

A sample of 120 homes sold recently in a big city gave the mean price of homes equal to $270,000 and the standard deviation equal to $70,000.

a) What is the point estimate of the mean price of all homes in the big city?

b) Construct a 99% confidence interval for the mean price of all homes in the big city.

c) Explain the advantage of the confidence interval over the point estimate.

Reference no: EM1386380

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Point estimation of the mean price of all homes : A sample of 120 homes sold recently in a big city gave the mean price of homes equal to $270,000 and the standard deviation equal to $70,000. (a) What is the point estimate of the mean price of all homes in the big city?

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