Suppose that you are buying a house. You and your realtor have determined that the most expensive house you can afford is the 34thpercentile. The 34thpercentile of housing prices is $240,000in the town you want to move to. In this town, can you afford 34%of the houses or 66%of the houses?

Short Answer

Expert verified

We can afford 34%of the houses.

Step by step solution

01

Given information

Given that34thpercentile of housing prices is$240,000

02

Explanation

In this question it is given we can afford only the 34thpercentile. Percentile means dividing all possible prices into 100scales from lowest and highest. Hence 34%percentile means this $240,000is the 34thhighest price among all possible prices. So we can afford only this much price only.

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