The average home price in Massachusetts is $410,000, with a standard deviation of $65,000. A city planner is studying the distribution across the state of home prices in the bottom 10%. What price will indicate that a home is in the bottom 10% if the city planner examines 200 homes around the state? Use the z-table below:

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The average home price in Massachusetts is $410,000, with a standard deviation of $65,000. A city planner is studying the distribution across the state of home prices in the bottom 10%. What price will indicate that a home is in the bottom 10% if the city planner examines 200 homes around the state? Use the z-table below:
Expert Solution
Step 1

The question is about normal distribution

Given :

Popl. avg. home price ( μ ) = $410,000

Popl. std. deviation of home price ( σ ) = $65,000

No. of homes ( n ) = 200

 

To find :

Price will indicate that a home is in the bottom 10% if the city planner examines 200 homes around the state

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