Quantitative Models, Applied Statistics

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Consider the following new business venture. An agent is considering investment in one of three real estate parcels:
• Option 1: multiunit rentals
• Option 2: commercial building
• Option 3: rural land development
The agent has a five-year time horizon and wishes to evaluate the opportunities irrespective of tax implications. However, the overriding consideration in the geographical market under study is the profitability of the market selected. The agent identified four possibilities as the fastest-growth markets:
• G1: Urban areas are the fastest growth.
• G2: Industrial development is the fastest growth.
• G3: Rural areas will grow most rapidly.

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