Custom-Home Resales. Regarding predicting the selling price of a home in the Equestrian Estates using the predictor variables square footage, number of bedrooms, number of bathrooms, and number of days on the market. The confidence and prediction intervals are for homes that have 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remain on the market for 60 days. a. Obtain a point estimate for the mean selling price of all homes in the Equestrian Estates that have 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remain on the market for 60 days. b. Obtain a 95% confidence interval for the mean selling price of all homes in the Equestrian Estates that have 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remain on the market for 60 days. c. Determine the predicted selling price of a randomly selected home in the Equestrian Estates that has 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remains on the market for 60 days. d. Determine a 95% prediction interval for the selling price of a randomly selected home in the Equestrian Estates that has 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remains on the market for 60 days. e. In solving parts (a) and (b), what assumptions are you making?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Custom-Home Resales. Regarding predicting the selling price of a home in the Equestrian Estates using the predictor variables square footage, number of bedrooms, number of bathrooms, and number of days on the market. The confidence and prediction intervals are for homes that have 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remain on the market for 60 days.
a. Obtain a point estimate for the
b. Obtain a 95% confidence interval for the mean selling price of all homes in the Equestrian Estates that have 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remain on the market for 60 days.
c. Determine the predicted selling price of a randomly selected home in the Equestrian Estates that has 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remains on the market for 60 days.
d. Determine a 95% prediction interval for the selling price of a randomly selected home in the Equestrian Estates that has 3200 sq ft, 4 bedrooms, 3 bathrooms, and that remains on the market for 60 days.
e. In solving parts (a) and (b), what assumptions are you making?
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