A Real Estate Investor Thinks the Real Estate Market Has

question 15

Essay

A real estate investor thinks the real estate market has bottomed out.One of the variables he examined to arrive at this conclusion was the proportion of houses sold at or above the asking price.In 2010,the proportion of houses sold at or above the asking price was 14%.The real estate investor takes a random sample of 40 recently sold houses and finds that nine of them are selling at or above the asking price.
a.Specify the population parameter to be tested.
b.Specify the null and alternative hypotheses to determine whether the proportion of houses sold at or above the asking price has increased.
c.Calculate the value of the test statistic and the p-value.
d.At the 10% significance level,can you conclude that the proportion of houses sold at or above the asking price has increased?

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Definitions:

Portfolio Analysis

A tool or method used by investors and organizations to assess the potential or performance of a set of investments or business units.

Growth-Market Share Matrix

A strategic tool used by companies to evaluate their product portfolios and decide on actions like investment, divestiture, or growth strategies, based on market growth rates and relative market share.

Product Platform

A set of common designs, components, and technologies that are used as a base to produce a range of products within a portfolio.

Brand Extension

Refers to a strategy where a company uses an existing brand name to launch a product in a different category.