You Are Interested in Purchasing a New Car

Essay

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 95% 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 $12,700 with a standard deviation of $700. Create a 95% confidence interval for the true mean resale value of a 5-year-old car of that model.