You hope to rent an unfurnished one-bedroom apartment in Dallas next year. You call a friend who lives there and ask him to give you an estimate of the mean monthly rate. Having recently taken a statistics course, your geeky friend asks about the desired margin of error and confidence level for the estimate. He also tells you that the standard deviation of monthly rents for one-bedrooms is $360. Explain why in either case your geeky friend's sample may result in a bigger margin of error than desired. A bigger margin of error might result due to rounding a smaller guessed value for the population standard deviation sg smaller confidence interval a larger sample size

You hope to rent an unfurnished one-bedroom apartment in Dallas next year. You call a friend who lives there and ask him to give you an estimate of the mean monthly rate. Having recently taken a statistics course, your geeky friend asks about the desired margin of error and confidence level for the estimate. He also tells you that the standard deviation of monthly rents for one-bedrooms is $360. Explain why in either case your geeky friend's sample may result in a bigger margin of error than desired. A bigger margin of error might result due to rounding a smaller guessed value for the population standard deviation sg smaller confidence interval a larger sample size

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
There is a normal distribution with mean 10 and standard deviation of 8. What is the z-score of an observation equaling 15?
In a hypothetical country called Tritonland, demand and supply of fish are determined by the following system of equations: Q Q = 3+P+v, where Q and P stand for quantity and price respectively, and that u and v are independent Uniform [0, 2]. Suppose we have i.i.d. observations (Qi, Pi)_1 from n markets in equilibrium. Answer the next few questions. = 15 P+u,
EXAMPLE 18.3 Micro Pizza Heater: Market Demand A factory renovation is needed to build a compact microwave with a new shape, which will be called the Micro Pizza Heater. The low sales-volume prediction (20,000 heaters per year) has a subjectively estimated probability of 30%. The most likely market prediction is 30,000 units sold per year. The optimistic market prediction (30,000 sold the ﬁrst year, with annual increases of 5000) has a subjectively estimated probability of 10%. In all cases, the factory equipment and the market will last 5 years. The net revenue will be $10 per microwave. What is the probability distribution for the net revenue?
M3
St. John's Brewery (SJB) is getting ready for a busy tourist season. SJB wants to either increase production or produce the same amount as last year, depending on the demand level for the coming season. SJB estimates the probabilities for high, medium and low demands as 0.2, 0.3, and 0.5 respectively, on the basis of the number of tourists forecasted by the local recreational bureau. If SJB increases production, the expected profits corresponding to high, medium and low demands are $750,000, $325,000 and $100,000 respectively. If SJB does not increase production, the expected profits are $450,000, $325,000 and $150,000 respectively. (NOTE: Text answers are case sensitive and the value of different parts of this question is indicated in square brackets [*/*]) Construct a decision tree for SJB. On the basis of the EV, what should SJB do? What is the expected value of increasing production? What is the expected value of not increasing production? Should SJB increase production (enter…
Assume that adults have IQ scores that are normally distributed with a mean of μ = 105 and a standard deviation o=15. Find the probability that a randomly selected adult has an IQ less than 123. Click to view page 1 of the table. Click to view page 2 of the table. The probability that a randomly selected adult has an IQ less than 123 is (Type an integer or decimal rounded to four decimal places as needed.) C
The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:
Given a sample with a mean of 151 and a standard deviation of 27, find the probability that a randomly selected value from the sample will be less than 187.0. Round your answer to 3 decimal places, e.g. 0.194. Pr(X < 187.0)
An analysis of the grades on the first test in History 101 revealed that they approximate a normal curve with a mean of 75 and a standard deviation of 8. The instructor wants to award the grade of A to the upper 10% of the test grades. To the nearest percent, what is the dividing point between an A and a B grade?
Suppose the amount of change IWU students carry is exponentially distributed with a mean of $0.88. Suppose that we randomly pick 25 IWU students and learn how much change they have. What type of distribution does the population, which is the change carried by IWU students, follow? What are the mean and standard deviation of the population? (6 points) What type of distribution does the sample mean follow? What are the mean and standard deviation of the sample mean? (6 points) Find the probability that the average change of 25 IWU students was between $0.80 and $1.00. Graph the situation, shade in the area to be determined, and find the probability. (6 points)