Question

So far, we have only focused on estimating the mean living area in homes in Ames. # Now you'll try to estimate the mean home price. # .Take a random sample of size 50 from price . Using this sample, what is your # best point estimate of the population mean?

Answer 1

If samples of size 50 are taken, the distribution of the sample arithmetic mean must be approximately normal. The arithmetic mean is an unbiased, efficient, sufficient and consistent estimator of the population mean. Therefore, the best punctual estimator of the population mean is the sample arithmetic mean (the sum of the 50 values of the housing prices divided by 50).

Explanation: