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

Respuesta :

Answer:

[tex]P(z<\frac{a-\mu}{\frac{\sigma}{\sqrt{n}}})=0.1[/tex]

And replacing the value obtained we got:

[tex]z=-1.282<\frac{a-410000}{\frac{\sigma}{\sqrt{200}}}[/tex]

And if we solve for a we got

[tex]a=410000 -1.282*\frac{65000}{\sqrt{200}}=404107.68[/tex]

Step-by-step explanation:

Let X the random variable that represent the average home prices of a population, and for this case we know the distribution for X is given by:

Where [tex]\mu=410000[/tex] and [tex]\sigma=65000[/tex]

For this part we want to find a value a, such that we satisfy this condition:

[tex]P(X>a)=0.90[/tex]   (a)

[tex]P(X<a)=0.10[/tex]   (b)

We want to find a value who accumulate 0.10 of the area on the left and 0.90 of the area on the right of the normal standard distributon and for this case it's z=-1.282

And using the distribution for the sample mean we can do this:

[tex]P(X<a)=P(\frac{X-\mu}{\frac{\sigma}{\sqrt{n}}}<\frac{a-\mu}{\frac{\sigma}{\sqrt{n}}})=0.10[/tex]  

[tex]P(z<\frac{a-\mu}{\frac{\sigma}{\sqrt{n}}})=0.1[/tex]

And replacing the value obtained we got:

[tex]z=-1.282<\frac{a-410000}{\frac{\sigma}{\sqrt{200}}}[/tex]

And if we solve for a we got

[tex]a=410000 -1.282*\frac{65000}{\sqrt{200}}=404107.68[/tex]