Instruction 5-5
There Are Two Houses with Almost Identical Characteristics

question 66

Short Answer

Instruction 5-5
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
$$\begin{array} { | c | c | c | } \hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \\\hline .25 & - \$ 22,500 & \$ 30,500 \\\hline .40 & \$ 10,000 & \$ 25,000 \\\hline .35 & \$ 40,500 & \$ 10,500 \\\hline\end{array}$$
-Referring to Instruction 5-5,what is the expected value gain if you invest in both houses?

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Definitions:

Declarative Memory

Declarative memory refers to the recall of specific facts and events that can be consciously verbalized.

Corticobulbar

Pertaining to neural pathways that connect the cerebral cortex to the brainstem, involved in movement control.

Corticospinal

Pertaining to the motor pathways that travel from the cerebral cortex to the spinal cord, involved in voluntary movement control.

Direct Motor Pathways

Neural paths descending from the brain to the spinal cord responsible for the voluntary movement of muscles.