Question

Suppose houses are available for purchase during construction of a new housing development. Two different types of houses are being built: rancher and colonial. The mean price of the ranchers is $319,000 with a standard deviation of $12,000. The mean price of the colonials is $405,000 with a standard deviation of $18,500.

Answer 1

a) The purchase price for the colonial houses is reduced by $10,000. What would be the new mean for the colonial houses?

b) If the purchase price for the colonial houses is reduced by $10,000, how much would the standard deviation for the colonial houses change?

Answer 2

@johnweldon1993

Answer 3

Ahh that makes it easier lol...well lets see....

a) take the new price...add the price of the ranches...divide by 2...

so 319,000 + 395,000
------------------ = ?
2

Answer 4

And then for b) you need to find the variance...and then take the square root of it to find the new standard deviation...

Variance = (Price of ranches)^2 + (new price of colonials)^2
The the square root of that = standard deviation

Standard Deviation =

\[\large \sqrt{319000^2 + 395000^2}\]

Answer 5

thank you :)

Answer 6

Of course :)

Answer 7

IS B 16,055.72 OR 5,996.09