Question
The prices of condos in a city are normally distributed with a mean of $90,000 and a standard deviation of $28,000. The city government exempts
The prices of condos in a city are normally distributed with a mean of $90,000 and a standard deviation of $28,000. The city government exempts the cheapest 6.68% of the condos from city taxes.
Requirements:
a. What is the maximum price of the condos that will be exempt from city taxes?
b. If 1.79% of the most expensive condos are subject to a luxury tax, what is the minimum price of condos that will be subject to the luxury tax?
Step by Step Solution
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a PX x 0 00668 normal distribution 90000 28000 PX x 0 00668 x 0 ...
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Elementary Statistics Picturing The World
Authors: Ron Larson, Betsy Farber
6th Edition
0321911210, 978-0321911216
