Question

a)A business executive, transferred from Chicago to Atlanta, needs to sell her house in Chicago quickly. From conversations with her realtor, the executive believes the price she will get by leaving the house on the market for another month is uniformly distributed between $200,000 and $237,000.  If she leaves the house on the market for another month, what will be the standard deviation of the price she will get?

b)A business executive, transferred from Chicago to Atlanta, needs to sell her house in Chicago quickly. From conversations with her realtor, the executive believes the price she will get by leaving the house on the market for another month is uniformly distributed between $206,000 and $231,000.  If she leaves the house on the market for another month, what is the probability that she will get more than $227,000?

C)A business executive, transferred from Chicago to Atlanta, needs to sell her house in Chicago quickly. From conversations with her realtor, the executive believes the price she will get by leaving the house on the market for another month is uniformly distributed between $203,000 and $239,000.  If she leaves the house on the market for another month, what is the probability that she will get less than $222,000

D)A business executive, transferred from Chicago to Atlanta, needs to sell her house in Chicago quickly. From conversations with her realtor, the executive believes the price she will get by leaving the house on the market for another month is uniformly distributed between $208,000 and $233,000.  If she leaves the house on the market for another month, what is the probability that she will get exactly $224,000?

Answer 1

Let X is a random variable shows the price she will get by leaving the house on the market for another month.

a)

Here X has uniform distribution between

a = 200,000 and b = 237,000

The standard deviation of the price she will get is

b)

Here X has uniform distribution between

a = 206,000 and b = 231,000

The probability that she will get more than $227,000 is

c)

Here X has uniform distribution between

a = 203,000 and b = 239,000

The probability that she will get less than $222,000 is

d)

Since uniform distribution is continuous distribution so the probability that she will get exactly $224,000 is

P(X = 224,000) = 0