Question

In a given area, houses sell for an average of $124,000 with a standard deviation of $11,300. If you randomly select a house, what is the probability of it selling for less than $120,000?

a) 0.2119
b) 0.7881
c) 0.6526
d) 0.2112

Answer 1

To find the probability of a house selling for less than $120,000, we need to standardize the value using the z-score formula.

Step-by-step explanation:

To find the probability of a house selling for less than $120,000, we need to standardize the value using the z-score formula.

Z = (X - µ) / σ, where X is the value, µ is the mean, and σ is the standard deviation.

Plugging in the values, we have Z = (120,000 - 124,000) / 11,300 = -0.3539.

Looking up the z-score in the standard normal distribution table, we find that the probability of a value being less than -0.3539 is approximately 0.2119. Therefore, the probability of a house selling for less than $120,000 is option a) 0.2119.