In: Statistics and Probability
A report announced that the median sales price of new houses sold one year was $221,000, and the mean sales price was $270,400. Assume that the standard deviation of the prices is $100,000.
(d) If you select a random sample of n=100, what is the probability that the sample mean will be between $275,000 and $285,000?
The probability that the sample mean will be be between $275,000 and $285,000 is
µ = 270400
sd = 100000
n = 100
= P(0.46 < Z < 1.46)
= P(Z < 1.46) - P(Z < 0.46)
= 0.9279 - 0.6772
= 0.2507