Chapter Project Home Sweet Home: Using Confidence Intervals to Analyze and Compare Home Prices One of the biggest purchases we make in our lives is a home. As we buy a home we ask ourselves many questions such as: * Data The data can be found at How much should I spend for a home? stat.hawkeslearning.com Data Sets > Mount Pleasant How many bathrooms are there? Real Estate Data What is the cost per square foot? Suppose you are looking for a house near Charleston in Mount Pleasant, SC, and you have narrowed your search to three subdivisions: Carolina Park, Dunes West, and Park West. a. Download the Mount Pleasant Real Estate data set. f. Construct an interval to estimate the true average List Price for each subdivision with 95% confidence. Based on these confidence intervals, is it possible that Carolina Park and Dunes West b. Import the data into Minitab, Excel or other statistical software. c. For the variable List Price, calculate the sample mean, the sample standard deviation, and the sample size for the three different subdivisions. have the same average List Price. Discuss. g. Do you think a List Price of $520,000 is a reasonable value for the Carolina Park Put the calculations in a table and round to the subdivision? nearest dollar for the sample standard deviation and the mean. h. Do you think a List Price of $670,000 is a reasonable value for the Dunes West d. Based on the data set and the information we subdivision? have, which confidence interval should we use here, a z or atinterval? Why? i. Do you think a List Price of $568,000 is a reasonable value for both the Carolina Park and е. the critical value for a confidence level Park West subdivisions? for each subdivision for the variable List Price.

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