Suppose that prices of recently sold homes in one neighborho

Suppose that prices of recently sold homes in one neighborhood have a mean of

$225,000

with a standard deviation of

$6550

. Using Chebyshev\'s Theorem, what is the minimum percentage of recently sold homes with prices between

$211,900

and

$238,100

? Round your answer to one decimal place.

Solution

As

k = (x-u)/sigma

Then for x = 211900,

k = (211900-225000)/6550 = -2

For x = 238100,

k = (238100-225000)/6550 = 2

Hence, by Chebyshev\'s theorem,

1 - 1/k^2 = 1 - 1/2^2 = 0.75 or 75% [ANSWER]