For the Following Mortgage Application, Calculate the Housing Expense Ratio

question 5

Short Answer

For the following mortgage application, calculate the housing expense ratio and the total expense ratio, rounding to the nearest tenth of a percent. $$\begin{array} { l l l l l l } & \text { Monthly } & \text { Monthly } & \text { Other Monthly } & \text { Housing } & \text { Total } \\& \text { Gross } & \text { (PITI) } & \text { Financial } & \text { Expense } & \text { Obligations } \\\text { Applicant } & \text { Income } & \text { Expense } & \text { Obligations } & \text { Ratio } & \text { Ratio } \\\text { Walker } & \$ 3,500 & \$ 800 & \$ 610 & &\end{array}$$

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Definitions:

Mean

A statistical measure representing the central or typical value in a set of data, calculated by dividing the sum of values by their number.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the set.

Algebra

A branch of mathematics dealing with symbols and the rules for manipulating these symbols in formulas.

Mathematical Likelihood

A measure of the probability of a set of observations given a particular statistical model.