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 $90?
A)0
B)0.023
C)0.159
D)0.977
E)None of the above

Question

Quizplus · Accepted Answer

We need to calculate the z-score first:

z = (90 - 100) / 5 = -2

Then, we can find the probability using a standard normal distribution table or calculator:

P(z > -2) = 0.977

Therefore, the probability that the average price per square foot for a home is greater than $90 is 0.977 or approximately 97.7%. The answer is D.

Data for a Particular Subdivision near Downtown Houston Indicate That