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The home prices (in thousands of dollars) in a county located in the upper mid- Atlantic region of the United States is a lognormal random variable with a median of 403 and a mode of 245.
(i) What percentage of the homes in this region cost more than $500,000?
(ii) If a home is considered "a?ordable" in this region if it costs between $150,000 and $300,000, what percentage of homes fall into this category?
(iii) Plot the pdf for this random variable. Compute its mean and indicate its value on the plot along with the value given for the median. Which seems to be more "representative" of the central location of the distribution, the mean or the median?
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Design a calculator simulation to estimate the probability described in (a). Describe your simulation method clearly enough so that a classmate could carry it out without further explanation from you.
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