Question

A business executive, transferred from Chicago to Atlanta, needs to sell her house in Chicago quickly. The executive's employer has offered to buy the house for $214,000, but the offer expires at the end of the week. The executive does not currently have a better offer but can afford to leave the house on the market for another month. From conversations with her realtor, the executive believes the price she will get by leaving the house on the market for another month is uniformly distributed between $200,000 and $23s,000. (a) If she leaves the house on the market for another month, what is the mathematical expression for the probability density function of the sales price? Let x salees price. $200,000 Sxs $235,000 fx)= elsewhere (b) If she leaves it on the market for another month, what is the probability she will get at least $221,000 for the house? (c) If she leaves it on the market for another month, what is the probability she will get less than $214,000? (d) Should the executive leave the house on the market for another month? Why or why not? price than if the house is sold This is a Select other month, the expected sales price in dollars will be $ If the executive leaves the house on the market for probability that the executive will get less than the back to the company for $214,000. However, if the house is left on the market for another month, there is a company offer of $214,000. It is a close call. But the expected value suggests the executive Select-leave the house on the market another month.

my question accidently posted twice, i only need it once please

Answer 1

Ans: Nul2,00.000 235,000) 3 5000 235000 - 200000 200000 3 x 23 5000 a) f(x) = 35000 ! otherwise 35000 200 000 P(x > 221000) - - 0 (x< 221000) 221000 221000 f(x).dn = 200000 200000 1 1 (21000) - 047 3 5000 x< 214000) = 1 214000 216000 f(a).da = 3 5000 2. 00000 200000 L ( 214000 - 200000) – 10.41 3 S000 235000 + 200000 - $217.500 1st blank - ($217500) and blank - More 3rd blank - (0.4 4th blank - Executive should I leave the house on the market another month