The distribution of housing costs where the family currently

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A family is considering a move from a Midwest City to Virginia. The distribution of housing costs where the family currently lives follows normal distribution, with mean $105,000 and standard deviation $18,200. Suppose the housing cost in VA also has normal distribution with mean of $235,000 and standard deviation $30,400. The family’s current home has a value of $110,000. What percentage of houses in the Midwest City cost less than the family’s current house? What price house will the family need to purchase to be in the same percentile of housing costs in the new city of VA as they are in the current city?

Reference no: EM132266085

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