lOMoARcPSD|4629196
When choosing a package for a real estate company with different sample sizes and confidence intervals, do you
think agents would prefer different confidence levels nyercals than their management? what advantages and
disadvantages would there be in having different confidence intervals for agents?
Based on the scenario provided, my recommendation would be to choose the Silver
Package, which offers a sample size of 1,000 listings at a cost of $10,000. This option strikes a
balance between cost-effectiveness and accuracy in estimating the mean listing price for homes
in the Northeast region.
Confidence Statement:
"I am 95% confident the true mean listing price for homes in the Northeast region is
within $7,750 of the sample mean of $310,000."
Factors considered in the recommendation:
1. Cost-effectiveness:
The Silver Package offers a reasonable compromise between cost and
accuracy. While the Gold Package provides the smallest margin of error, the
cost of $25,000 may not be justifiable for the B&K Real Estate Company,
especially considering that the Bronze Package offers a reasonably accurate
estimate at a fraction of the cost.
2. Margin of error:
When choosing a package for a real estate company with different sample sizes and confidence intervals, do you
think agents would prefer different confidence levels nyercals than their management? what advantages and
disadvantages would there be in having different confidence intervals for agents?
Based on the scenario provided, my recommendation would be to choose the Silver
Package, which offers a sample size of 1,000 listings at a cost of $10,000. This option strikes a
balance between cost-effectiveness and accuracy in estimating the mean listing price for homes
in the Northeast region.
Confidence Statement:
"I am 95% confident the true mean listing price for homes in the Northeast region is
within $7,750 of the sample mean of $310,000."
Factors considered in the recommendation:
1. Cost-effectiveness:
The Silver Package offers a reasonable compromise between cost and
accuracy. While the Gold Package provides the smallest margin of error, the
cost of $25,000 may not be justifiable for the B&K Real Estate Company,
especially considering that the Bronze Package offers a reasonably accurate
estimate at a fraction of the cost.
2. Margin of error:
