Exhibit 5-14

question 5

Multiple Choice

Exhibit 5-14.The foreclosure crisis has been particularly devastating in housing markets in much of the south and west United States,but even when analysis is restricted to relatively strong housing markets the numbers are staggering.For example,in 2011 an average of three residential properties were auctioned off each weekday in the city of Boston,up from an average of one per week in 2005. Refer to Exhibit 5-14.What is the probability that no more than two foreclosure auctions occurred on a randomly selected weekday of 2011 in Boston?

• A)0.1991
• B)0.2240
• C)0.4232
• D)0.5768

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Definitions:

Basalt

A dark, fine-grained volcanic rock formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet or moon.

Island Arc

A series of volcanic islands shaped in a curve situated along the junction of tectonic plates, usually created over a plate being forced downward.

Hawaiian Islands

An archipelago located in the Pacific Ocean, formed by volcanic activity from a hot spot beneath the Earth’s crust.

Aleutian Islands

a chain of islands located in the Northern Pacific Ocean, forming part of the Alaska state boundary.