Condo Sales and Interest Rates

question 189

Short Answer

Condo Sales and Interest Rates
​ The probability that condo sales will increase in the next 6 months is estimated to be 0.30.The probability that the interest rates on condo loans will go up in the same period is estimated to be 0.75.The probability that condo sales or interest rates will go up during the next 6 months is estimated to be 0.90. ​ ​
-{Condo Sales and Interest Rates Narrative} What is the probability that both condo sales and interest rates will increase during the next six months?

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Definitions:

Monetary Cost

Refers to the explicit financial cost of conducting a business activity or completing a transaction, measured in units of currency.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than others, enabling trade benefits.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same resources.

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity, using fewer resources.