Chapter4Q13answer[1] - probabilities acting as the weights In theory if you repeated the process of selling your house under identical conditions a

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Chapter 4 Question 13 Sale price of house ($) Probability Sale price × Probability 120 000 0.1 12 000 100 000 0.5 50 000 80 000 0.4 32 000 Expected selling price = $94 000 The expected selling price is a weighted average of the possible selling prices, with the
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Unformatted text preview: probabilities acting as the weights. In theory, if you repeated the process of selling your house under identical conditions a large number of times, the average price you would obtain would be $94 000....
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This note was uploaded on 03/29/2010 for the course DMVS 324 taught by Professor Muller during the Spring '10 term at Stellenbosch University-South Africa.

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