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A housing survey was conducted to determine the price of a typical home in Topanga, CA. The mean price of a house was roughly $1.3 million with a standard deviation of $300,000. There were no houses listed below $600,000 but a few houses above $3 million.
(a) Is the distribution of housing prices in Topanga symmetric, right skewed, or left skewed? Hint: Sketch the distribution.
(b) Would you expect most houses in Topanga to cost more or less than $1.3 million?
(c) Can we estimate the probability that a randomly chosen house in Topanga costs more than
$1.4 million using the normal distribution?
(d) What is the probability that the mean of 60 randomly chosen houses in Topanga is more than
$1.4 million?
(e) How would doubling the sample size affect the standard deviation of the mean?
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Example Exercise: 4.35 (OpenIntro Statistics), 4.27 (Advanced High School Statistics) |
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