Statistical Analysis on Housing and Electricity Expenditure in USA

STATISTICS
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1) The quantitative variable selected is USD – Housing.
2) The confidence interval selected is 95% as the level of significance or α has been taken as
5%.
3) Sample mean = USD 21,900.60
Sample standard deviation = USD 3752.758
Sample size = 30
Standard error = 3752.758/300.5 = USD 685.16
Considering that population standard deviation is not known, the t statistics would be used to
compute the confidence interval (Flick, 2015).
For df = 30-1 = 29 and significance level of 5%, the t critical value = 2.045
The above has been computed using online calculator and the relevant screenshot is indicated
below.
Lower limit of 95% confidence interval = 21900.6 – 2.045*685.16 = USD 20,499.45
Higher limit of 95% confidence interval = 21900.6 + 2.045*685.16 = USD 23,301.75
4) We can conclude with 95% confidence that average annual expenditure on housing in
USA would lie between USD 20,499.45 and USD 23,301.75.