Question

Refer to the various selling prices of various homes in a community that follow the normal distribution with mu (population mean) = $276,000 and sigma (standard deviation – measure of dispersion) = $32,000. Calculate the probability that the next house in the community will sell for between $276,000 and $325,000.

Answer 1

0.43715

Explanation:

We solve using z score calculator

z = (x-μ)/σ, where

x is the raw score

μ is the population mean = $276,000

σ is the population standard deviation = 32,000

For x = $276,000

z = 276,000 - 276,000/32000

z = 0

Probability value from Z-Table:

P(x = 276000) = 0.5

For x = $325,000

z = 325,000 - 276,000/32000

z = 1.53125

Probability value from Z-Table:

P(x = 325000) = 0.93715

The probability that the next house in the community will sell for between $276,000 and $325,000 is

P(x = 325000) - P(x = 276000)

= 0.93715 - 0.5

= 0.43715