The following activities and questions relate to material covered in Chapter 6.1 The Standard Normal Distribution in Introductory Business Statistics (OpenStax).

Questions

1. A Yukon Rent Survey in October 2020 showed that the average unit rent was $1315, per month. Assuming the rental standard deviation σ = $ 150. The rental price is normally distributed. X ~ N (1315, 150). ^[1] Calculate the z-score for a rental price of $1000 and interpret it using a complete sentence.

Solutions

1. [latex]Z=\dfrac{X-\mu}{\sigma}>\dfrac{1000-1315}{150}=-2.1[/latex]
   The rental price of $1000 is 2.1 standard deviations below the mean of $1315, per month.