Suppose a real estate agent is interested in comparing the asking prices of condos in Montreal and
Question:
Suppose a real estate agent is interested in comparing the asking prices of condos in Montreal and Halifax. The agent conducts a small telephone survey in the two cities, asking the condo prices. A random sample of 21 listings in Montreal resulted in a sample average price of $328,000, with a standard deviation of $14,900. A random sample of 26 listings in Halifax resulted in a sample average price of $331,000, with a standard deviation of $13,700. The agent assumes condo prices are normally distributed and the variance in prices in the two cities is about the same. What would he obtain for a 90% confidence interval for the difference in mean condo prices between Montreal and Halifax? Test whether there is any difference in the mean prices of condos in the two cities for α = 0.10.
Step by Step Answer:
Business Statistics For Contemporary Decision Making
ISBN: 9781119577621
3rd Canadian Edition
Authors: Ken Black, Ignacio Castillo