An Investor Is Keeping a Careful Eye on the Real

question 6

Short Answer

An investor is keeping a careful eye on the real estate markets in Las Vegas and the Inland Empire. The following are her predictions for the real estate market for the next year.
• With 0.32 probability, foreclosures will increase in Las Vegas.
• With 0.46 probability, foreclosures will increase in Las Vegas or the Inland Empire.
• With 0.27 probability, foreclosures will increase in Las Vegas and the Inland Empire.
What is the probability that foreclosures will increase in the Inland Empire given that they increased in Vegas?

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Definitions:

Bootstrap Distribution

A method in statistics for estimating the sampling distribution of an estimator by resampling with replacement from the original sample.

Bootstrap Confidence Interval

A type of confidence interval calculated by resampling a dataset with replacement and estimating the desired statistic multiple times.

Bias

In statistics and research, bias refers to a systematic error that leads to incorrect results by favoring certain outcomes over others unintentionally.

Normal

Pertaining to or describing a type of continuous probability distribution for a real-valued random variable that has a symmetrical, bell-shaped curve known as the normal distribution.