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the mean prices of homes in a certain neighborhood is $50,000 and the standard deviation is $10,000. find the proportion of homes that fall between $30,000 and $70,000
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- If an average home in your town currently costs $300,000, and house prices are expected to grow at an average rate of 5 percent per year, what will an average house cost in 10 years?Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $110, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $100,400.a. Suppose you own the entire firm, and the company issues only one policy. What are the expected payout, expected profit, variance and standard deviation of your scenario? (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) b. Now suppose your company issues two policies. The risk of fire is independent across the two policies. Make a table of the payout and profit, along with their associated variances and standard deviations. (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) c. Continue to assume the company has issued two policies, but now assume you take on a partner, so that you each own one-half of the firm. Make a table of the possible payout and profit…Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $110, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $100,400.a. Suppose you own the entire firm, and the company issues only one policy. What are the expected payout, expected profit, variance and standard deviation of your scenario? (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) b. Now suppose your company issues two policies. The risk of fire is independent across the two policies. Make a table of the payout and profit, along with their associated variances and standard deviations. (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) c. Continue to assume the company has issued two policies, but now assume you take on a partner, so that you each own one-half of the firm. Make a table of the possible payout and profit…
- Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $150, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $140,000. Required: a. Make a table of the two possible payouts on each policy with the probability of each. (Negative answers should be indicated with a minus sign.) b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance, and standard deviation of your profit? (Do not round intermediate calculations. Round your standard deviation to the nearest whole number.) c. Now suppose your company issues two policies. The risk of fire is independent across the two policies. Make a table of the three possible payouts along with their associated probabilities. (Negative answers should be indicated with a minus sign. Round your "Probability" answers to 4 decimal places.) d. What are the expected value, variance, and…Next year, in the good state of the world, one parcel of land is worth $130,000 and in the bad state of the world, one parcel of land is worth $30,000. Next year in the good state of the world, one housing unit is worth $250,000 and in the bad state of the world, one housing unit is worth $200,000. Next year, one housing unit will rent for $15,000 regardless of the state of the world. One housing unit currently costs $190,000 and the current risk free rate is 4.00%. How many housing units do you need to buy now to set up a replicating portfolio for land payouts next year?A home costs $148,500 to build and is sold for $168,000. What is the percent markup on selling price to the nearest tenth of a percent?
- The price for one coffin is 1,500 I want to sell 1,700 and sell 12 of them in one year what would the estimate the Gross Profit Margin will be for this product?Brady’s market research indicates that if the price of a room-night determined in requirement 1 is reduced by 10%, the expected number of room-nights Brady could rent would increase by 10%. Should Brady reduce prices by 10%? Show your calculations.In 2011, home prices and mortgage rates fell so far that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for 10 markets and the monthly mortgage on the median priced home (including taxes and insurance) for 10 cites where the average monthly mortgage payment was less than the average asking rent (The Wall Street Journal, November 2627, 2011). a. Develop a scatter chart for these data, treating the average asking rent as the independent variable. Does a simple linear regression model appear to be appropriate? b. Use a simple linear regression model to develop an estimated regression equation to predict the monthly mortgage on the median priced home given the average asking rent. Construct a plot of the residuals against the independent variable rent. Based on this residual plot, does a simple linear regression model appear to be appropriate? c. Using a quadratic regression model, develop an estimated regression equation to predict the monthly mortgage on the median-priced home, given the average asking rent. d. Do you prefer the estimated regression equation developed in part (a) or part (c)? Create a plot of the linear and quadratic regression lines overlaid on the scatter chart of the monthly mortgage on the median-priced home and the average asking rent to help you assess the two regression equations. Explain your conclusions.
- In some housing markets, it is predicted that homes will continue to appreciate at 4% per year into the future. If you purchase a home for $435,500.00, what can you expect to sell it for after 11 years, if this appreciation percentage is correct?The Business Manager of a Commercial Laboratory needs to determine the present value of a $170,000 investment received at the end of year 7. What is the present value of the investment if the discount rate is 6%?A price for a house in thousands of dollars t years after 2015 is given by the model P(t) = 190 x (1.038)^t what was the price of the house in 2015 is the price increasing or decreasing, by how much use the model to predict the price in 2021 in what year will the price reach 290,000?
