use Excel or calculator. justify your answers by giving the excel or calculator
ID: 3360632 • Letter: U
Question
use Excel or calculator. justify your answers by giving the excel or calculator function4. 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 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?
Explanation / Answer
Forecolsure rate for DC is 1.31% = 0.0131
Forecolsure rate for Nation is 0.87% = 0.0087
a) Fewer than 2 houses forclosure in DC
1. P(0 houses went for foreclosure) = C(100,0)*(0.0131)^0*(0.9869)^100 = 0.2674
2. P(1 house out of 100 went for fore closure) = C(100,1)*(0.0131)^1*(0.9869)^99 = 0.3551
Total prob = 0.2674+0.3551 = 0.6225
b)
Fewer than 2 houses forclosure in Nation
1. P(0 houses went for foreclosure) = C(100,0)*(0.0087)^0*(0.9913)^100 = 0.4174
2. P(1 house out of 100 went for fore closure) = C(100,1)*(0.0087)^1*(0.9913)^99 = 0.3663
Total prob = 0.4174+ 0.3663 = 0.7837
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.