Question

Suppose the results of a survey showed that the distribution of the price of single family homes in Orange County has a mean of $400,000 and a standard deviation of $25,000. 1. If the distribution of home prices can be considered mound-shaped and symmetric,

what percentage of single family homes in Orange County will have a price of between $350,000 and $450,000?

2. If the shape of the distribution of home prices is highly skewed to the right, what percentage of single family homes in Orange County will have a price of more than $325,000 and less than $475,000?

Answer 1

1.

The percentage of single family homes in Orange County will have a price of between $350,000 and $450,000

2. Mean - (3*standard deviation) = 400,000 - (3*25000) = 325,000

Mean + (3*standard deviation) = 400,000 + (3*25000) = 475,000

Since 99.73% of values lies within the interval ( Mean - 3*sd, ,Mean + 3*sd)

So, The percentage of single family homes in Orange County will have a price of more than $325,000 and less than $475,000

= 99.73%