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The average one-bedroom apartment rents for $2,000 a month in Washington, D.C., with a standard deviation of $400. A real estate agent is looking to find a one-bedroom apartment for a client that is in the top 15% of all rentals in the city. How much should a client expect to pay for a one-bedroom apartment in the top 15% of rentals if the agent only surveys 50 apartments in the city

Respuesta :

The amount expected to pay for a one-bedroom apartment is $2,059

Given,

Rent of apartment in Washington DC for a month = $2000

Standard deviation = $400

The calculation of the amount expected to pay is shown below:-

Z value for top 15% area = 1.04

Then,  

Find the corresponding value to 1 - 0.15

= 0.85

Therefore,

X = μ + Z σ/√n

   = 2000 + 1.04 × (400/√50)

   = 2000 + 1.04 × 56.56854249

X = 2058.831284 ≈ 2059

The amount expected to pay for a one-bedroom apartment is $2,059

Learn more about standard deviation here: https://brainly.com/question/16941569

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