Answered: Apartment Size Two Bed One Bed…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

An apartment hunter is shopping for either a one-bedroom or two-bedroom apartment in varying apartment buildings. She wants to estimate the additional amount she would have to pay, on average, for a two-bedroom apartment versus a one-bedroom apartment. The table shows the prices, in dollars, for one- and two-bedroom apartments from the nine buildings she visited.

A 95% confidence interval for the true mean difference between two-bedroom and one-bedroom apartments for apartment buildings like the ones in the sample was (255.93, 508.51). A friend of the apartment hunter tells her to expect to pay about $500 more per month for a two-bedroom apartment than for a one-bedroom apartment. Does the confidence interval provide evidence for the friend’s claim?

A. No, the confidence interval does not contain 0, so the friend’s claim is not plausible.

B. No, the confidence interval contains many more numbers below 500 than above 500, so it is unlikely that the friend’s assertion is correct.

C. Yes, 500 is in the confidence interval, so it is a plausible difference. The friend’s claim that two-bedroom apartments cost $500 more per month, on average, is correct.

D. No, the width of the confidence interval is 252.58, so we should expect the difference in price between one-bedroom and two-bedroom apartments to be about $252.58. This is not $500, so the friend’s assertion is not plausible.

E. No, 500 is in the confidence interval, so it is a plausible difference. However, because values other than 500 are also in the interval, it does not confirm the friend’s claim that two-bedroom apartments cost $500 more per month, on average.