TABLE 7-3
The mean selling price of new homes in a small town over a year was $115,000. The population standard deviation was $25,000. A random sample of 100 new home sales from this city was taken.
-Referring to Table 7-3, without doing the calculations, state in which of the following ranges the sample mean selling price is most likely to lie?
A) $113,000 - $115,000
B) $114,000 - $116,000
C) $115,000 - $117,000
D) $116,000 - $118,000

Question

Quizplus · Accepted Answer

The sample mean is most likely to lie within one standard error of the population mean. The standard error is $25,000/√100 = $2,500. Therefore, the range $114,000 - $116,000 is most likely.

TABLE 7-3 The Mean Selling Price of New Homes in a Small