Statistics: Calculating Confidence Intervals – #205

Question: Desiring to purchase a new car. Point to consider: resale value of the car after 5 yrs. of ownership. I decide to estimate the resale value of the car with a 99% confidence interval. You manage to obtain data on 17 recently resold 5-year old foreign sedans of that model. The 17 cars were resold:

At an avg. price of $12,700

Standard deviation: $600

What is the correct form of a 99% confidence interval for the true mean resale value of a 5-year old specific foreign sedan?


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