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Instruction 7.2 The Mean Selling Price of New Homes in a Country

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Instruction 7.2
The mean selling price of new homes in a country town over a year was $115,000. The population standard deviation was $25,000. A random sample of 100 new home sales from this town was taken.
-Referring to Instruction 7.2,what is the probability that the sample mean selling price was between $114,000 and $116,000?


Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to new conditions or markets.

Quantity Theory

An economic theory that suggests the general price level of goods and services is directly proportional to the amount of money in circulation.

Money Supply

The total economic resources available in an economy at a certain period, including cash, coins, and the money in checking and savings accounts.

Inflation Tax

The implicit tax that holders of cash experience due to a decrease in purchasing power caused by inflation.

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