The Following Data Represent the Recent Sales Price (In $1,000s)

question 82

Multiple Choice

The following data represent the recent sales price (in $1,000s) of 24 homes in a Midwestern city (See the Excel Data File.) Suppose the data are grouped into five classes, and one of them will be "115 up to 140"-that is, {x; 115 ≤ x < 140}. The relative frequency of this class is ________.

• A) 6/24
• B) 7/24
• C) 6
• D) 7

---

Definitions:

Straight-Line Method

A depreciation method applying an equal expense rate each year over the useful life of the property.

Estimated Residual Value

The anticipated market value of an asset at the end of its useful life, used in calculating depreciation.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Depreciation Expense

Systematically spreading the expense of a physical asset over its duration of utility.