Instruction 5 -Referring to Instruction 5

question 93

Short Answer

Instruction 5.3
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
$$\begin{array} { | c | c | c | } \hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \\\hline 0.25 & - \$ 22,500 & \$ 30,500 \\\hline 0.40 & \$ 10,000 & \$ 25,000 \\\hline 0.35 & \$ 40,500 & \$ 10,500 \\\hline\end{array}$$
-Referring to Instruction 5.3,what is the expected value gain for the house in neighbourhood B?

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Definitions:

Team-Based Organization

A structure that integrates employees into flexible and collaborative teams aimed at achieving specific goals.

Self-Directed Teams

Groups of employees who are given the autonomy to manage themselves and make decisions related to their work.

Semi-Autonomous Responsibility

The granting of partial autonomy and control to employees or teams over their work and decision-making processes.

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization.