Question: Question 5:

South Florida saw one of the steepest declines in housing prices in the wake of the 2007 recession and financial crisis. Recently, there has been some discussion about a rebound in South Florida housing prices. In the associated data file, you will find data on existing home sales in 2010 and 2014. Do you think that housing prices in South Florida are finally rebounding?

a. Calculate a point estimate for the difference between population mean existing sale prices in 2010 and 2014. Provide an intuitive interpretation of this value. Does this point estimate support the claim?

b. Develop a 99% confidence interval estimate of the difference between existing home sales prices in 2010 and 2014. Make sure you state all assumptions clearly, define all terms, and explain the approach to interval estimation in this context.

c. Do you feel confident in concluding that existing home resale prices have increased between 2010 and 2014? Explain why or why not. Justify your answer.