6.1 The Standard Normal Distribution
The following activities and questions relate to material covered in Chapter 6.1 The Standard Normal Distribution in Introductory Business Statistics (OpenStax).
Questions
- 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
- [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.
- Data source: Yukon Bureau of Statistics. (October, 2020). Yukon rent survey October 2020. https://yukon.ca/sites/yukon.ca/files/ybs/rent_oct20.pdf. ↵