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Q1) We are interested in buying a Palm M515 PDA but require having general idea of how much we should pay. Therefore we should construct confidence interval. We will suppose that selling prices are close to being normally distributed. Selling prices of Palm M515 PDA on EBAY for one-week selling period in October when buy-it-now option was not available are listed below.
250
249
255
199
240
228
232
246
210
225
245
a) How do you know that you will require to create the confidence interval by using a t- distribution approach as opposed to z-distribution?
b) We wish to create this mean value interval for selling price with 95% confidence level,. Find out the best point estimate (average) for selling price
c) Critical t-value(s) associated with 95% confidence level
d) Margin of error
e) In a sentence, interpret contextual meaning of your result to part e above, that is relate values to this situation in regard to PDA's mean selling price.
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