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(a) Suppose one house from the city will be selected at random. Use the histogram to estimate the probability that the selected house is valued at less than $500,000. Show your work.

(b) Suppose a random sample of 40 houses are selected from the city. Estimate the probability that the mean value of the 40 houses is less than $500,000. Show your work.

(a) Suppose one house from the city will be selected at random. Use the histogram to estimate the probability that the selected house is valued at less than $50 class=

Answer :

opudodennis

Answer:

a.   0.71

b.   0.9863

Step-by-step explanation:

a. The mean of the distribution is given as $403,000 and the standard deviation is $278,000.

-To estimate the probability that a randomly selected house  has a value less than $500,000:

[tex]P(X<500,000)=P(X=0)+P(X=500)\\\\=0.34+0.37\\\\=0.71[/tex]

Thus, the probability that a randomly selected house has a value less than $500,000 is 0.71

b. -since 40 is larger than or equal to 30, we assume normal distribution.

-The probability can therefore be calculated as:

[tex]P(\bar X)=P(z<\frac{\bar X-\mu}{\sigma/\sqrt{n}})\\\\=P(z<\frac{500-403}{278/\sqrt{40}})\\\\=P(z<2.2068)\\\\=0.986336\\\\\approx 0.9863[/tex]

Hence, the probability  that the mean value of the 40 houses is less than $500,000 is 0.9863

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