The rent for a one-bedroom apartment in Southern California follows the normal distribution with a mean of $2,200 per month and a standard deviation of $250 per month. The distribution of the monthly costs does not follow the normal distribution. In fact, it is positively skewed. What is the probability of selecting a sample of 50 one bedroom apartments and finding the mean to be at least $1,950 per month?

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Business

Karson Berg

27 June, 00:55

The rent for a one-bedroom apartment in Southern California follows the normal distribution with a mean of $2,200 per month and a standard deviation of $250 per month. The distribution of the monthly costs does not follow the normal distribution. In fact, it is positively skewed. What is the probability of selecting a sample of 50 one bedroom apartments and finding the mean to be at least $1,950 per month?

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Julien Barker · Answer 1

The probability is 1.

Explanation:

Despite that the he distribution is positively skewed, the distribution of sample means of one-bedroom apartments will still be a a normal distribution based on Central Limit Theorem.

Since we have

μ = mean = 2200

SD = standard deviation = 250

n = sample size = 50

Therefore,

Standard error = SD : √n

= 250 : √50

= 250 : 7.07106781186548

= 35.3553390593274 approximately 35.36

Standardize xbar to z = (xbar - μ) : (SD : √n)

Therefore, we have:

P (xbar > 1,950) = P (z > (1,950 - 2200) : 35.36)

= P (z > - 250 : 35.36)

= P (z > - 7.07) = 1

Therefore, the probability of selecting a sample of 50 one bedroom apartments is 1 which can be said to be certain.