You are interested in purchasing a new car. One of the many…

Questions

Yоu аre interested in purchаsing а new car. One оf the many pоints you wish to consider is the resale value of the car after 5 years of ownership. Since you are particulary 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 16 recently resold 5-year-old foreign sedans of that model. These 16 cars were resold at an average price of $10,000 with a standard deviation of $1,000. Estimate the true mean resale value of this model of foreign car using a 95% confidence interval. What assumption must be met in order for this confidence interval to be valid?

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