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irakobra [83]
4 years ago
11

(a) Suppose one house from the city will be selected at random. Use the histogram to estimate the probability that the selected

house is valued at less than $500,000. Show your work.
(b) Suppose a random sample of 40 houses are selected from the city. Estimate the probability that the mean value of the 40 houses is less than $500,000. Show your work.

Mathematics
1 answer:
vodka [1.7K]4 years ago
8 0

Answer:

a.    0.71

b.    0.9863

Step-by-step explanation:

a. From the histogram, the relative frequency of houses with a value less than 500,000 is 0.34 and 0.37

-#The probability can therefore be calculated as:

P(500000)=P(x=0)+P(x=500)\\\\\\\\=0.34+0.37\\\\\\\\=0.71

Hence, the probability of the house value being less than 500,000 is o.71

b.

-From the info provided, we calculate the mean=403 and the standard deviation is 278 The probability that the mean value of a sample of n=40 is less than 500000 can be calculated as below:

P(\bar X

Hence, the probability that the mean value of 40 randomly selected houses is less than 500,000 is 0.9863

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