Instruction 5 -Referring to Instruction 5

question 43

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 covariance of the two houses?

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Definitions:

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.

Shaping Procedure

A method of positive reinforcement of behavior by which successive approximations of a desired behavior are reinforced.

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.