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Estimate Difference in Yearly Rent Costs for 2BR Apts in State College vs Bellefonte

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This document provides sample rent price data from 20 two-bedroom apartments in State College and Bellefonte to estimate the difference in yearly cost of renting between the two towns. It asks for a 90% confidence interval for the yearly rent difference and an interpretation of the interval.

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3 (15 pts.) You are tasked with estimating the difference in student monthly rent prices between renting a two-bedroom apartment in State College (S) versus Bellefonte (B). From a sample of 20 such available apartments in both towns, the following sample data, in dollars, was obtained: XS= 1360SS=80XB=1175SB=40 A. Based on this information, what is a 90% confidence interval for the difference in YEARLY cost of renting a two-bedroom apartment between State College and Bellefonte? Provide an interpretation of your interval.

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Estimate Difference in Yearly Rent Costs for 2BR Apts in State College vs Bellefonte

  • 1. 3 (15 pts.) You are tasked with estimating the difference in student monthly rent prices between renting a two-bedroom apartment in State College (S) versus Bellefonte (B). From a sample of 20 such available apartments in both towns, the following sample data, in dollars, was obtained: XS= 1360SS=80XB=1175SB=40 A. Based on this information, what is a 90% confidence interval for the difference in YEARLY cost of renting a two-bedroom apartment between State College and Bellefonte? Provide an interpretation of your interval.