corporation that owns apartment complexes wishes to estimate the average length of time residents remain in the same apartment before moving out. A sample of 150 rental contracts gave a mean length of occupancy of 3.7 years with standard deviation 1.2 years. Construct a 95% confidence interval for the mean length of occupancy of apartments owned by this corporation.
The critical value for and degrees of freedom is
The corresponding confidence interval is computed as shown below:
Therefore, based on the data provided, the 95% confidence interval for the population mean is which indicates that we are 95% confident that the true population mean is contained by the interval
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