If the mean for a realestate cmpanies homes are $150000 and the standard deviation $25000, and a house sold for $175000 (which is in the 84 percentile), explain what that percentile means for this problem.
2007-06-05 12:20:26 · 4 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
That means that the house is within 1 standard deviation of the mean. From 125000 to 175000 84% of the houses are going to fall within that range. If it were say 100000 and 200000 then 96% of houses would sell in that range. Make sense?
14nickel is wrong. It means that 84% fell between 125000 and 175000. Sorry 14nickel, don't mean to point you out.
2007-06-05 12:25:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Percentile correspond to positions on the cumulative probability distribution. When you use a z-table, this is the distribution you work with.
The mean + 1sd = 175,000. If you look at the z-table, this corrsponds to a z of +1, at which 16 percent of houses are expected to sell at a higher value than 175000, or that that sale is higher than 84 percent of all expected sales.
[sorry GME, I have to agree with nickel. The central part of the normal distribution from -1 sigma to +1 sigma is 68 percent of the CDF. From symmetry, 16 percent is above +1 sigma which means 84 percent has to be below. ]
2007-06-05 12:29:19 · answer #2 · answered by cattbarf 7 · 0⤊ 0⤋
I don't know. Dived by 84 multiply by 100 to get the 100th percentile. Use it to get your inter quartile range ext.
2007-06-05 12:30:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
that means that 84% of homes sold for less then that one.
2007-06-05 12:25:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋