Professor is trying to buy a house, but homes in his target area are commonly selling for over list price.

He collects a simple random sample of recent home sales in his area and computes for each the percent

over list price each sale represents. This data is recorded in the

POL

variable (as decimals: e.g. 0.13 =

13%. Negative numbers indicating sale price below list price).

a) [5] Decide, using StatCrunch to help, whether or not the distribution is approximately normal.

b) [10] Professor wants to make an offer on a house that has a listing price of $300,000. Use a normal

model to determine an offer price for Professor which would put it in the 80

th

percentile in terms of its

percent over asking price. Round to the nearest $1,000. [Remember to show all work and include any

StatCrunch output.]