You want to rent an unfurnished one-bedroom apartment for next semester. You take a random sample of 10 apartments advertised in the local newspaper and record the rental rates. Here are the rents (in dollars per month):

500 650 600 505 450 550 515 495 650 395

a) Find a 95% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in this community.
b) If you chose 99% rather than 95% confidence, would your margin of error in the previous exercise be larger or smaller? Explain your answer and verify it by doing the calculations.

Question

You want to rent an unfurnished one-bedroom apartment for next semester. You take a random sample of 10 apartments advertised in the local newspaper and record the rental rates. Here are the rents (in dollars per month):

500 650 600 505 450 550 515 495 650 395

a) Find a 95% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in this community.
b) If you chose 99% rather than 95% confidence, would your margin of error in the previous exercise be larger or smaller? Explain your answer and verify it by doing the calculations.