The Foreclosure Crisis Has Been Particularly Devastating in Housing Markets

question 76

Multiple Choice

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.What is the probability that exactly four foreclosure auctions occurred on a randomly selected weekday of 2011 in Boston?

• A) 0.1680
• B) 0.1954
• C) 0.2240
• D) 0.8153

---

Definitions:

Define Group

The process of specifying a set of individuals or items that share one or more characteristics, for the purpose of categorization or analysis.

Crystal Ball

A metaphorical term often used in decision making and forecasting to represent the ability to predict future events or outcomes.

Risk Analysis

The process of identifying and assessing potential risks and their impacts, used in finance, security, engineering, and many other fields to inform decision-making.

Risk

Exposure to the chance of loss or damage, often quantified in terms of probability and impact.