Housing costs A government report on housing costs says that single-family home prices nationwide are skewed to the right, with a mean of $235,700.
a. We collect price data from a random sample of 50 homes in Orange County, California. Why is it okay to use these data for inference even though the population is skewed?
b. The standard deviation of the 50 homes in our sample was $25,500. Specify the sampling model (shape, center, spread) for the mean price of such samples.
c. This sample of randomly chosen homes produced a 90% confidence interval for the
mean price in Orange County of ($233,954, $246,046). Does this interval provide evidence
that single-family home prices are unusually high in this county? Explain briefly.
d. Suppose we hope to improve our estimate by choosing a new sample. How many home
prices must we survey to have 90% confidence of estimating the mean local price to within
$2000?

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The Answer of Housing costs A government report on housing costs says that single-family home prices nationwide are skewed to the right, with a mean of $235,700.
a. We collect price data from a random sample of 50 homes in Orange County, California. Why is it okay to use these data for inference even though the population is skewed?
b. The standard deviation of the 50 homes in our sample was $25,500. Specify the sampling model (shape, center, spread) for the mean price of such samples.
c. This sample of randomly chosen homes produced a 90% confidence interval for the
mean price in Orange County of ($233,954, $246,046). Does this interval provide evidence
that single-family home prices are unusually high in this county? Explain briefly.
d. Suppose we hope to improve our estimate by choosing a new sample. How many home
prices must we survey to have 90% confidence of estimating the mean local price to within
$2000?

Housing Costs a Government Report on Housing Costs Says That