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The home prices (in thousands of dollars) in a county located in the upper mid- Atlantic region of the United States is a lognormal random variable with a median of 403 and a mode of 245.
(i) What percentage of the homes in this region cost more than $500,000?
(ii) If a home is considered "affordable" in this region if it costs between $150,000 and $300,000, what percentage of homes fall into this category?
(iii) Plot the pdf for this random variable. Compute its mean and indicate its value on the plot along with the value given for the median. Which seems to be more "representative" of the central location of the distribution, the mean or the median?
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On October 19, 1987, the stock market (as measured by the Dow Jones Industrial Average) lost almost one-quarter of its value in a single day. Nevertheless, some traders made a profit buying call options on the stock index and then liquidating their p..
When Russell Hypes died unmarried in 2012, he left an estate valued at $6,650,000. His trust directed distribution as follows: $15,000 to the local hospital, $75,000 to his alma mater, and the remainder to his three adult children. Death-related cost..
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Kirsten Neal is interested in purchasing a new house given that mortgage rates are at a historical low. Her bank has specific rules regarding an applicant's ability to meet the contractual payments associated with the requested debt.
If the tax rate is 40 percent, what is the annual OCF for the project?
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