Assume that house prices in a neighborhood are normally distributed with a standard deviation of 20,000. A random sample of 16 observations is taken. What is the probability that the sample mean differs from the population mean by more than 5,000?
What will be an ideal response?
Question 2
You were told that the amount of time lapsed between consecutive trades on the New York Stock Exchange followed a normal distribution with a mean of 15 seconds. You were also told that the probability that the time lapsed between two consecutive trades to fall between 16 to 17 seconds was 13. The probability that the time lapsed between two consecutive trades would fall below 13 seconds was 7. What is the probability that the time lapsed between two consecutive trades will be longer than 17 seconds?
What will be an ideal response?
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