Question

$ External - F19 Assignments signment 42 1 F19 nt #2 emaining Time: 05:08:50 A real estate agents attempting to determine a reasonable asking price for a home seller she is representing. To do this, she researches all the comparable houses that have been sold in the same neighbourhood within the last two years. and finds that the mean asking price has been 475 in hundreds of thousands of dollars) with a standard deviation of 43 in hundreds of thousands of dollars). a) If the real estate agent lists her client's house at 400 (in hundres dollars what would be the comes Enter your response to at least 3 decimal places Number b) The house the real estate agent is trying to sell is not as nice houses on the market, so the agent wit have to stata below-average asking price. However she does not want to go too far below average, and decides on an asking price that yields a score of. 105. What was the asking price (in hundreds of thousands) at which the real estate agent listed the house Enter your response to at least 2 decimal places Do not include any units in Number Back Question Menu Next Submit Assignment

Answer 1

Solution:

We are given:

u = 475,0 = 43

Areal estate agentis attempting to determine a reasonable asking price for a home-seller she is representing. To do this, she researches all the comparable houses that have been sold in the same neighbourhood within the last two years, and finds that the mean asking price has been 475 din hundreds of thousands of dollars.) with a standard deviation of 43 (in hundreds of thousands of dollars). a) If the real estate agent lists her client's house at 400 (in hundreds usands of dollars, what would be the corresponding Z-score? Enter your response to at least 3 decimal places Z=-_400-475 =-1.744 43 -1.744 Number b) The house the real estate agent is trying to sell is not as nice as some of the other houses on the market, so the agent will have lost it at a below-average asking price. However, she does not want to go too far below average, and decides on an asking price that yields a Z-score of .1.65. What was the asking price in hundreds of thousands) at which the real estate agentlisted the house? Enter your responsalo at least 2 decimal places. Do not include any units in your response 404.05 I=zxO+ =-1.65x43+475 =404.05 Number