Question

A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...

A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $350,000, the company believes that it will be able to get an average sale price of $260,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $17,000.

a. What is the probability that the condominium will sell at a price (i) below $240,000?, (ii) above $293,000? (Round final answers to 4 decimal places.)

b. The company is also trying to sell an artist’s condo. Potential buyers will find the unusual features of this condo either pleasing or objectionable. The manager expects the average sale price of this condo to be the same as others at $260,000, but with a higher standard deviation of $22,000. What is the probability that this condo will sell at a price (i) Below $240,000?, (ii) Above $293,000? (Round your answers to 4 decimal places.)

Homework Answers

Answer #1

a)i) P(X < 240000)

= P((X - )/ < (240000 - )/)

= P(Z < (240000 - 260000)/17000)

= P(Z < -1.18)

= 0.1190

ii) P(X > 293000)

= P((X - )/ < (293000 - )/)

= P(Z < (293000 - 260000)/17000)

= P(Z > 1.94)

= 1 - P(Z < 1.94)

= 1 - 0.9738

= 0.0262

b)i) P(X < 240000)

= P((X - )/ < (240000 - )/)

= P(Z < (240000 - 260000)/22000)

= P(Z < -0.91)

= 0.1814

ii) P(X > 293000)

= P((X - )/ < (293000 - )/)

= P(Z < (293000 - 260000)/22000)

= P(Z > 1.5)

= 1 - P(Z < 1.5)

= 1 - 0.9332

= 0.0668

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $350,000, the company believes that it will be able to get an average sale price of $255,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $17,000. a. What is the probability that the condominium will sell at...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $350,000, the company believes that it will be able to get an average sale price of $267,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $22,000. a. What is the probability that the condominium will sell at...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $300,000, the company believes that it will be able to get an average sale price of $191,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $17,000. [You may find it useful to reference the z table.] a....
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $300,000, the company believes that it will be able to get an average sale price of $220,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $18,000. [You may find it useful to reference the z table.] a....
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $300,000, the company believes that it will be able to get an average sale price of $191,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $17,000. [You may find it useful to reference the z table.] a....
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers,...
A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $300,000, the company believes that it will be able to get an average sale price of $191,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $17,000.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT