The probability that the mean value of the 40 houses is less than $500000 is 0.9863
The probability of an event occurring is defined by chance. There are numerous instances in real life where we may need to make predictions about how something will turn out. The outcome of an event may be known to us or unknown to us. When this happens, we say there is a chance that the event will happen. In general, probability has many significant applications in games, in business to make predictions based on probability, and in this new branch of artificial intelligence.
Given that, n=40
Here, we have to find P(X<500000)
Thus, using a standard normal table we can find the probability as,
P(X<500000)
[tex]P((X-bar - Mean/Std deviation)/\sqrt{n}) < ((500000-403000/278000)/\sqrt{40} )[/tex]
=P(Z<2.2068)=0.9863
Hence,
P(X<500000)=0.9863
Hence, the probability that the mean value of the 40 houses is less than $500,000 is 0.9863
Learn more about probability:
https://brainly.com/question/11234923
#SPJ4
