Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

Published by McGraw-Hill Education
ISBN 10: 0078136334
ISBN 13: 978-0-07813-633-7

Chapter 6 - The Normal Distribution - 6-2 Applications of the Normal Distribution - Exercises 6-2 - Page 339: 20

Answer

$227085$, and $265515$.

Work Step by Step

We have $\mu=246300, \sigma=15000$, to satisfy the middle 80% of the market, we need 10% at the lower end and 10% higher, which means the probability would be 0.1 for the lower and $1-0.1=0.9$ for the higher. Use Table E, $P(z1)=0.1, z1=-1.281$ for the lower, and $P(z2)=0.9, z2=1.281$ for the higher. $z1=\frac{X1-246300}{15000}=-1.281, X1=227085$, $z2=\frac{X2-246300}{15000}=1.281, X2=265515$ The minimum and maximum prices of the houses are $227085$, and $265515$.
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