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Arlecino [84]
3 years ago
8

(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:
Mila [183]3 years ago
8 0

Answer:

a)   0.71

b)   0.9863

Step-by-step explanation:

a. Given the mean prices of a house is $403,000 and the standard deviation is $278,000

-The probability the probability that the selected house is valued at less than $500,000 is obtained by summing the frequencies of prices below $500,000:

P(X

Hence, the probability of a house price below $500,000 is 0.71

b. -Let X be the mean price of a randomly selected house.

-Since the sample size 40 is greater than 30, we assume normal distribution.

-The probability can therefore be calculated as follows:

P(X

Thus, the probability  that the mean value of the 40 houses is less than $500,000 is 0.9863

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