[tex]\begin{gathered} \text{Given} \\ \mu=187500 \\ \sigma=12500 \\ x_1=150000 \\ x_2=225000 \end{gathered}[/tex]
First, find the z-score of the two values $150,000 and $225,000
[tex]\begin{gathered} \text{z-score for }x_1 \\ z=\frac{x-\mu}{\sigma} \\ z=\frac{150000-187500}{12500} \\ z=\frac{-37500}{12500} \\ z_1=-3 \\ \; \\ \text{z-score for }x_2 \\ z=\frac{x-\mu}{\sigma} \\ z=\frac{225000-187500}{12500} \\ z=\frac{37500}{12500} \\ z_2=3 \end{gathered}[/tex]
Since the z-scores are both 3 standard deviations away from the mean, by Emperical rule, we conclude that about 99.7% of the homes will be priced between $150,000 and $225,000.
