Problem: Analyze the Northeast home listing prices to be able to give the agents information on the mean listing price using a 95% confidence interval. This has to be done in three categories bronze, silver and gold. We are using a sample size based on 100 listings for bronze, 1000 for silver and 4000 for gold. Below is the information for each category.
Bronze:
Bronze Package - Sample size of 100 listings:
95% confidence interval for the mean of the Northeast house listing price has a margin of error of $24,500
Cost for service to B&K: $2,000
Silver:
Silver Package - Sample size of 1,000 listings:
95% confidence interval for the mean of the Northeast house listing price has a margin of error of $7,750
Cost for service to B&K: $10,000
Gold:
Gold Package - Sample size of 4,000 listings:
95% confidence interval for the mean of the Northeast house listing price has a margin of error of $3,900
Cost for service to B&K: $25,000
Since there is an additional cost for data collection my company charges more for the package of 4000 than the package of 100.
Then explain which package would be recommended for the B&K Company and explain why.