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

question 22

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 standard deviation of the value gain for the house in neighbourhood A?

---

Definitions:

Business Processes

The series of activities or tasks that companies perform to create value, deliver products, or provide services.

Copyrightable

Qualifying for copyright protection; used to describe original works of authorship that are fixed in a tangible medium of expression.

Unauthorized Reproduction

The creation of copies of copyrighted material without the permission of the copyright holder.

Infringement of Copyright

The unauthorized use of copyrighted material without the permission of the copyright owner, constituting a legal violation.