# Refer to the North Valley Real Estate data, which report information on homes sold during the last

## Question:

Refer to the North Valley Real Estate data, which report information on homes sold during the last year.

a. The mean selling price (in $ thousands) of the homes was computed earlier to be $357.0, with a standard deviation of $160.7. Use the normal distribution to estimate the percentage of homes selling for more than $500,000. Compare this to the actual results. Is price normally distributed? Try another test. If price is normally distributed, how many homes should have a price greater than the mean? Compare this to the actual number of homes. Construct a frequency distribution of price. What do you observe?

b. The mean days on the market is 30 with a standard deviation of 10 days. Use the normal distribution to estimate the number of homes on the market more than 24 days. Compare this to the actual results. Try another test. If days on the market is normally distributed, how many homes should be on the market more than the mean number of days? Compare this to the actual number of homes. Does the normal distribution yield a good approximation of the actual results? Create a frequency distribution of days on the market. What do you observe?

DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

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**Related Book For**

## Basic Statistics For Business And Economics

**ISBN:** 9781260187502

9th Edition

**Authors:** Douglas A. Lind, William G Marchal, Samuel A. Wathen

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