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:

Answer 1

Step-by-step explanation:

a) $1,000 or more?

As the data is usually distributed, using the 3-step approach to solve the problem: draw the image (I'm not going to do it here), locate the z-point, and identify the region on the graph.

(1000-951)/96 = .5104 = 0.51 = Z, so area = 1 -0.6950 = 0.3050

b) Between $900 and $1,100?

(900-951)/96 = -0.53 = Z, and (1100-951)/96 = 1.55 = Z So area = 0.9394 - 0.2981 = 0.6413

c) Between $825 and $925?

(825-951)/96 = -1.31 = Z, and (925-951)/96 = -0.27 = Z So area = 0.3936 - 0.0951 = 0.2985

d) Less than $700?

(700-951)/96 = -2.61 = Z, so area = 0.0045