M/PF Research, Inc. lists the average monthly apartment rent in some of the most

Question

M/PF Research, Inc. lists the average monthly apartment rent in some of the most expensive apartment rental locations in the United States. According to their report, the average cost of renting an apartment in Minneapolis is $951. Suppose that the standard deviation of the cost of renting an apartment in Minneapolis is $96 and that apartment rents in Minneapolis are normally distributed. If a Minneapolis apartment is randomly selected, what is the probability that the price is: a. $1,000 or more? b. Between $900 and $1, 100? c. Between $825 and $925? d. Less than $700?

Explanation / Answer

Here mean=951 and sd=96

a. P(x>1000)

As it is given this is normally distributed we will convert this to z

P(z>1000-951/96)=P(z>0.875)=0.5-P(0.510)=0.5-0.195=0.305

b. P(900<x<1100)=P(-0.53<z<1.55)=P(0<=1.55)-P(0<=z<=-0.53)=0.4394+0.2019=0.6413

c. P( 825<x<925)=P(-1.31<z<-0.27)=P(0<z<-0.27)-P(0<=z<=-1.31)= 0.2985

d. P(x<700)=P(z<-2.61)=0.5+P(0<=z<=-2.61)=0.5-0.4955=0.0045

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.