Question

A family moved to Orlando, FL and bought a home. They paid $254,876 for their house. In their neighborhood the mean price of a home is $267,985 with a standard deviation of $5,834. Calculate the z-score for the price of their home and indicate if the price they paid for their home usual or unusual?

Answer 1

Step-by-step explanation: standard score is equal to sample mean - population mean all over standard deviation.

Z=×-u/sigma. Where sigma is standard deviation. 267985-254876=13109. 13109/5834=2.247. Therefore the standard score is 2.247. The price they paid for the house is usual.