Ms. Ramírez is a real estate broker. Last month, the sale prices of homes in her area approximated a normal distribution with a mean of $150,000 and a standard deviation of $25,000. What is the probability that the sale is less than $175,000?(1 point)

Answer 1

To find the probability that the sale price is less than $175,000, we need to find the z-score of $175,000 and then look up the corresponding probability on the standard normal distribution table.

First, calculate the z-score:
z = (X - μ) / σ
z = ($175,000 - $150,000) / $25,000
z = $25,000 / $25,000
z = 1

Now, look up the probability of a z-score of 1 on the standard normal distribution table. The probability of a z-score of 1 is approximately 0.8413.

Therefore, the probability that the sale price is less than $175,000 is 0.8413 or 84.13%.