Mr. Clark offers an apartment for $430. Do you think his price is within the lowest 5% of offers?
Provide a clear answer and complete mathematical reasoning.
Workings:
I am reviewing for Statistics final and I don't know where to even start for this problem so any help will be appreciated.
I would guess the intended answer (not that I think it a good one) is that because you know nothing about the distribution of offers you can be $95\%$ confident that his offer is not in the lowest $5\%$. Of course, if you know nothing about the distribution of offers there may be only five of them and there are none in the bottom $5\%$.