Use the number 7.14 to respond to the following:
1 answer:
You might be interested in
Answer:
The amount of money separating the lowest 80% of the amount invested from the highest 20% in a sampling distribution of 10 of the family's real estate holdings is $238,281.57.
Step-by-step explanation:
Let the random variable <em>X</em> represent the amount of money that the family has invested in different real estate properties.
The random variable <em>X</em> follows a Normal distribution with parameters <em>μ</em> = $225,000 and <em>σ</em> = $50,000.
It is provided that the family has invested in <em>n</em> = 10 different real estate properties.
Then the mean and standard deviation of amount of money that the family has invested in these 10 different real estate properties is:
Now the lowest 80% of the amount invested can be represented as follows:
The value of <em>z</em> is 0.84.
*Use a <em>z</em>-table.
Compute the value of the mean amount invested as follows:
Thus, the amount of money separating the lowest 80% of the amount invested from the highest 20% in a sampling distribution of 10 of the family's real estate holdings is $238,281.57.