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 less than $85?
A)0.001
B)0.999
C)0.618
D)0.382
E)None of the above

Question

Quizplus · Accepted Answer

The z-score for a price of $85 is (85 - 100) / 5 = -3. The probability of a z-score less than -3 is 0.001.

Data for a Particular Subdivision near Downtown Houston Indicate That