document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=259831>Question 259831</A>: <I><SPAN STYLE=\"word-break: break-all;\"> According to the National Association of Home Builders, the median selling price of new homes in the United States in 2002 was $187,100.  Which of the following is the most plausible value for the standard deviation: $15,000, $1000, $60,000, or $1,000,000. why? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #191426 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=191426\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> According to the National Association of Home Builders, the median selling price of new homes in the United States in 2002 was $187,100.  Which of the following is the most plausible value for the standard deviation: $15,000, $1000, $60,000, or $1,000,000. why?<BR>\n" );
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document.write( "The housing prices probably range from 120,000 to 250,000<BR>\n" );
document.write( "That is a range of 130,000<BR>\n" );
document.write( "6-sigma pretty well covers the range of a normal distribution.<BR>\n" );
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document.write( "If 6sigma = 130,000<BR>\n" );
document.write( "sigma = (1/6)(130,000) is approximately 21,000<BR>\n" );
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document.write( "Ans: 15,000 looks like a plausible standard deviation.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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