Answer:
z-score = -0.448
Since the z-score is in the range of -1.96 and 1.96 the price paid for the home is usual.
Explanation:
Data provided:
Price Paid = $309,450
Mean price = $310,500
Standard deviation = $2,340
Now,
The z-score is calculated as:
z-score = [tex]\frac{\textup{X - Mean}}{\textup{Standard Deviation}}[/tex]
on substituting the respective values,
z-score = [tex]\frac{\textup{309,450 - 310,500}}{\textup{2340}}[/tex]
or
z-score = -0.448
Since the z-score is in the range of -1.96 and 1.96 the price paid for the home is usual.
