Question

Use the Central Limit Theorem to find a mean given a probability Question 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: z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 -1.5 0.067 0.066 0.064 0.0630.062 0.061 0.0590.058 0.057 0.056 -1.4 0.081 0.0790.078 0.076 0.075 0.074 0.072 0.071 0.069 0.068 -1.3 0.097 0.095 0.093 0.092 0.090 0.089 0.087 0.085 0.084 0.082 -1.2 0.115 0.113 0.111 0.109 0.107 0.106 0.104 0.102 0.100 0.099 -1.10.136 0.133 0.131 0.129 0.127 0.125 0.123 0.121 0.119 0.117 -1.0 0.159 0.156 |0.1540.152 0.149 0.1470.145 0.142 0.140 0.138

Answer 1

We need to find z such that P(Z< z)= 0.1 =z= -1.28 (Normal table)

4596.1941 65000 OK n 200 x = แ = 410000