What is the probability between 175 and 200 homes?

Question

A group of realtors estimates that​ 23% of all homes purchased last year were considered investment properties. If a sample of 800 homes sold last year is​ obtained, what is the probability that between 175 and 200 homes are going to be used as investment​ property?

Answer 1

You can use a normal distribution approximation or get the exact answer in Excel. The exact answer can be found using = BINOMDIST(200,800,0.23,1)-BINOMDIST(174,800,0.23,1)= Note the 174 here.