Question

Average house cost is $46,00 the shape of the distribution is unknown and not to be normal 60% of the housing prices fell between $38,100 and $53,900 what is the standard deviation?

Answer 1

Average, Mean housing price = 46,000 $

As per normal distribution, 68% of the observations lie between one standard deviation on either side of the mean

It means, if x is the mean, ? is the standard deviation, we have 68% observations lying between x-? and x+?

Here let us consider the values of 38100 and 53900

46000-38100 = 7900

53900-46000 = 7900

It means that ? = 7900

In this distribution, we have 60% observations lying between x-? and x+?

The standard deviation, ? = 7900

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