Question

If the average price of a new one-family home is 246300 with a standard deviation of 15000, find the minimum and maximum prices of the houses that a contractor will build to satisfy the middle 88% of the market. Assume that the variable is normally distributed. Use a graphing calculator and round the answers to the nearest dollar.

Minimum price:


Maximum price:

Answer 1

Right tail of 10% = +1.2816

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minimum price = -1.2816*15000+ 246,300 = $227,076.73

maximum price = +1.2816*15000 + 246,300 = $265,524.00

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Cheers,

Stan H.

Explanation: