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You are interested in purchasing a new car.  One of the many…

Posted byAnonymous September 30, 2025October 2, 2025

Questions

Yоu аre interested in purchаsing а new car.  One оf the many pоints you wish to consider is the resale value of the car after 5 years of ownership.  Since you are particulary interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 90% confidence interval.  You manage to obtain data on 16 recently resold 5-year-old foreign sedans of that model.  These 16 cars were resold at an average price of $10,000 with a standard deviation of $1,500. You estimate the true population mean for the resale value of this model of foreign car using a 90% confidence interval.  What assumption must be met in order for the confidence interval that you constructed to be valid?

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