It Is Reported That 23% of the Home Mortgages in Cowlitz

question 54

Multiple Choice

It is reported that 23% of the home mortgages in Cowlitz County are "underwater".For 50 randomly selected home mortgages, compute the standard deviation of the random variable "number of underwater home mortgages" in the sample of 50.Assume all the binomial conditions are met.

• A)3.66
• B)4.38
• C)1.33
• D)2.98
• E)1.80

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Definitions:

Cross Price Elasticity

A gauge of the responsiveness in the demand for a specific product due to fluctuations in the pricing of another product.

Midpoint Method

A technique used in economics for calculating elasticity by averaging the starting and ending prices and quantities.

Cross-Price Elasticity

Measure of how the quantity demanded of one good responds to a change in the price of another good.

Positive

Affirmative, constructive, or based on factual data; often used in reference to positive statements in economics which describe the world as it is, rather than how it should be.