You Are Interested in Purchasing a New Car $12,380 \pm 2.921 ( 800 / \sqrt { 17 } )$

Short Answer

You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 99% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $12,380 with a standard deviation of $800. What is the 99% confidence interval for the true mean resale value of a 5- year-old car of this model? A) $12,380 \pm 2.921 ( 800 / \sqrt { 17 } )$

B) $12,380 \pm 2.898 ( 800 / \sqrt { 17 } )$

C) $12,380 \pm 2.575 ( 800 / \sqrt { 17 } )$

D) $12,380 \pm 2.921 ( 800 / \sqrt { 16 } )$