An Investor Is Keeping a Careful Eye on the Real

question 49

Short Answer

An investor is keeping a careful eye on the real estate markets in Las Vegas and the Inland Empire. The following are her predictions for the real estate market in 2016.
• With 0.32 probability, foreclosures will increase in Las Vegas.
• With 0.46 probability, foreclosures will increase in Las Vegas or the Inland Empire.
• With 0.27 probability, foreclosures will increase in Las Vegas and the Inland Empire.
What is the probability that foreclosures will increase in the Inland Empire?

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Definitions:

Birth Rate

The average number of live births per 1,000 people in a given population per year.

Payroll Tax

Taxes imposed on employers and/or employees, usually calculated as a percentage of the salaries that employers pay their staff.

Baby Boom Generation

denotes the demographic cohort born approximately between 1946 and 1964, experiencing high birth rates post World War II.

Stock Market

A collection of markets where stocks (pieces of ownership in businesses) are bought, sold, and traded.