You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 99% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $ 12 comma 740 with a standard deviation of $ 800. What is the 99% confidence interval for the true mean resale value of a 5-year-old car of this model?

99% confidence interval for the true mean resale value of a 5-year-old car of this model is [$12,173.24 , $13,306.76].

Step-by-step explanation:

We are given that you manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model.

These 17 cars were resold at an average price of $ 12 comma 740 with a standard deviation of $ 800.

Firstly, the pivotal quantity for 99% confidence interval for the true mean is given by;

                      P.Q. =    ~

where, = sample average price = $12,740

            s = sample standard deviation = $800

            n = sample of cars = 17

            = true population mean

Here for constructing 99% confidence interval we have used One-sample t test statistics as we don't know about population standard deviation.

So, 99% confidence interval for the population mean, is ;

P(-2.921 < < 2.921) = 0.99  {As the critical value of t at 16 degree of

                                            freedom are -2.921 & 2.921 with P = 0.5%}  

P(-2.921 < < 2.921) = 0.99

P( < < ) = 0.99

P( < < ) = 0.99

99% confidence interval for = [ , ]

                                   = [ , ]

                                   = [$12,173.24 , $13,306.76]

Therefore, 99% confidence interval for the true mean resale value of a 5-year-old car of this model is [$12,173.24 , $13,306.76].

0.16 or 16%

step-by-step explanation:

lets take a coin for example.

if you toss it twice, it has a 1/4 chance of landing on heads both times because 1/2 * 1/2 is 1/4.

with the cards, the chance of picking dog is 0.4. having two people pick one is like picking a card twice in a row. so 0.4 * 0.4 is 0.16, or 16%

n

step-by-step explanation: