The average sales price of a single-family house in the United States is $176,800. You randomly select
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The average sales price of a single-family house in the United States is $176,800. You randomly select 12 single-family houses. What is the probability that the mean sales price is more than $160,000? Assume that the sales prices are normally distributed with a standard deviation of $50,000.
a. Use the Central Limit Theorem to find μx̅ and σx̅ and sketch the sampling distribution of the sample means.
b. Find the z-score that corresponds to x̅ = $160,000.
c. Find the cumulative area that corresponds to the z-score and calculate the probability that the mean sales price is more than $160,000.
d. Interpret the results.
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 
Elementary Statistics Picturing The World
ISBN: 9780321911216
6th Edition
Authors: Ron Larson, Betsy Farber
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