The Prices of Condos in a City Are Normally Distributed

question 88

Short Answer

The prices of condos in a city are normally distributed with a mean of $90,000 and a standard deviation of $28,000.
a.The city government exempts the cheapest 6.68% of the condos from city taxes. What is the maximum price of the condos that will be exempt from city taxes?
b.If 1.79% of the most expensive condos are subject to a luxury tax, what is the minimum price of condos that will be subject to the luxury tax?

---

Definitions:

Zona Glomerulosa

The outermost layer of the adrenal cortex, involved in the production of mineralocorticoids like aldosterone.

Zona Reticularis

The innermost layer of the adrenal cortex that produces androgenic steroids.

Glucagon

A hormone produced by the pancreas that increases blood glucose levels by stimulating the liver to break down glycogen into glucose.

Pancreas

A glandular organ located in the abdomen that plays an essential role in digestion and blood sugar regulation, by secreting digestive enzymes and insulin.