The Foreclosure Crisis Has Been Particularly Devastating in Housing Markets

question 27

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 10 foreclosure auctions occurred during a randomly selected five-day week in 2011 in Boston?

• A) 0.0008
• B) 0.0486
• C) 0.1185
• D) 0.9514

---

Definitions:

Forecasting

The practice of making predictions about future events based on historical and current data.

Cycle-sensitive Decisions

Decision-making that takes into account the cyclical nature of business, markets, or economic conditions, adjusting strategies accordingly.

Consensus Approach

A collaborative decision-making process where all group members agree on a specific outcome or decision.

Highly Motivated

Exhibiting a strong drive and commitment towards achieving specific goals or tasks.