Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed).What is the probability that the average price per square foot for a home is greater than $110?
A)0
B)0.023
C)0.841
D)0.977

Question

Quizplus · Accepted Answer

We can use the z-score formula to calculate the probability:
z = (110 - 100) / 5 = 2
Using a standard normal distribution table, the probability of getting a z-score greater than 2 is 0.023. Therefore, the probability that the average price per square foot for a home is greater than $110 is 0.023 or 2.3%.

Data for a Particular Subdivision near Downtown Houston Indicate That