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: $177,500 $279,900 $219,900 $143,000 $205,800 $224,000 $459,900 $229,500 $187,500 $162,000 $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:
(pick one from below)
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.
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