If the average of a home cost $100,000 with a deviation of $15,000. what would be the average cost of the homes distributed. Also, if someone bought a home for 75,000, what proportion of homes cost an equal amount or more than this
please advise in terms of average deviation vs
standard Deviation
Average cost = u = $100,000
Standard deviation = $15,000
X = $75,000
P( X > $75,000 ) = ?
Z-score = ( X - u )/s
= ( 75000 - 100000 )/ 15000
= -25000/15000
= -1.67
P( X > $75,000 ) = P( Z > -1.67) = 0.9525 = 0.95 ... From Z score to Probability Calculator
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