1. Because of uncertainty in real estate markets, many homeowners are considering remodeling and constructing additions rather than selling. Probably the most expensive room in the house to remodel is the kitchen, with an average cost of around $23, 400. In terms of resale value, is remodeling the kitchen worth the cost? Below are cost and resale figures published by Remodeling magazine for 11 cities. Use these data to construct a 90% confidence interval for the difference between cost and added resale value of kitchen remodeling. Resale $25,163 24,625 12,600 24,588 City Atlanta Cost $20,427 27,255 22,115 23,256 21,887 22,786 19,852 23,624 25,885 28,999 20,836 Boston Des Moines Kansas City, MO Louisville 19,267 20,150 22,500 18,667 26,875 35,333 16,292| Newark, NJ Raleigh-Durham Reno Ridgewood, NJ San Francisco Tulsa

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