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Question: (Use computer) The Washington, D.C., region has one of the fastest-growing foreclosure rates in the nation, as 15,613 homes went into foreclosure during the one-year period ending in February 2008 (The Washington Post, June 19,2008). Over the past year, the number of foreclosures per 10,000 is 131 for the Washington area, while it is 87 nationally. In other words, the foreclosure rate is 1.31 % for the Washington area and 0.87% for the nation. Assume that the foreclosure rates remain stable.
a. What is the probability that in a given year, fewer than 2 out of 100 houses in the Washington area will go up for foreclosure?
b. What is the probability that in a given year, fewer than 2 out of 100 houses in the nation will go up for foreclosure?
c. Comment on the above findings.
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