77_1&course_id3_1890879_1&content_id%3D_55460962S HCR Rent Relie..Standard License a...A Student Documents...Take Test: Test 1-...Stock Analysis.pdf-..O LumQuestion Completion Status:QUESTION 1Two students are tasked to create a confidence interval for the population mean price of rent prices paid by studentsfrom their campus. Since it is impractical and expensive to ask every student about how much they pay for rent, theyrandomly surveyed 200 students. Student A suggests they should use a Z distribution and student B suggest they should usea T-distribution for constructing the confidence interval. Which distribution would you suggest. Explain your reasoning.ロi 公TTTTParagraph3 (12pt)TArialT THTML CSSf. MashupsWords:0Path: p

Defination of Confidence Interval: Let X1, X2,......Xn be a random sample T1 = t1( X1, X2,......Xn )…

Answered: QUESTION 1 Two students are tasked to…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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77_1&course_id3_1890879_1&content_id%3D_55460962
S HCR Rent Relie..
Standard License a...
A Student Documents...
Take Test: Test 1-...
Stock Analysis.pdf-..
O Lum
Question Completion Status:
QUESTION 1
Two students are tasked to create a confidence interval for the population mean price of rent prices paid by students
from their campus. Since it is impractical and expensive to ask every student about how much they pay for rent, they
randomly surveyed 200 students. Student A suggests they should use a Z distribution and student B suggest they should use
a T-distribution for constructing the confidence interval. Which distribution would you suggest. Explain your reasoning.
ロi 公
TTTT
Paragraph
3 (12pt)
T
Arial
T T
HTML CSS
f. Mashups
Words:0
Path: p

Expert Solution

Step 1

Defination of Confidence Interval: Let X₁, X₂,......X_n be a random sample T₁ = t₁( X₁, X₂,......X_n ) and T₂ = t₂( X₁, X₂,......X_n ) be any two statistics such that T₁< T₂, then the confidence limits for a parametric function $π (θ)$ of $θ$ can be obtained by the relations;

P_$θ$( T₁ > $π | θ$ ) = $α$ ₁

P_$θ$( T₂ > $π | θ$ ) = $α$ ₂

where, $α$ ₁ and $α$ ₂are independent of $θ$ and are the areas of critical region on the left and right tails respectively of the probability density cure. The confidence interval is given as,

P_$θ$( T₁ $\leq π (θ) \leq$ T₂) = 1 - $α$ ........where $α = α$ ₁ + $α$ ₂

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