Question

The following data represent the asking price of a simple random sample of homes for sale. Construct a 99% confidence interval with and without the outlier included. Comment on the effect the outlier has on the confidence interval.

Here is the information: $231,500 $279,900 $219,900 $143,000 $205,800 $253,500 $459,900 $273,500 $187,500 $167,500 $147,800 $264,900

A) Construct a 99% confidence interval with the outlier included: ($_____ , $ _____)

B) Construct a 99% confidence interval with the outlier removed: ($_____ , $ _____)

C) Comment on the effect the outlier has on the confidence interval:

a) The outlier caused the width of the confidence interval to increase.

b) The outlier caused the width of the confidence interval to decrease.

c) The outlier had no effect on the width of the confidence interval.

Answer 1

Please only post your questions once. Repeating posts will not get a quicker response. In addition, it wastes our time looking over reposts that have already been answered in another post. Thank you.

See your later post.

a)

Answer 2

A. using Ti-84 calculater: go STAT then edit ,type the data in L1 ,then STAT again go to TESTS go to Tinterval then press ENTER. then press Calculate.then you've got your answers.Goodluck :)