ECON 3205 Albany State University Economic & Business Statistics Questions


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Abiodun Ojemakinde, Professor
Econ 3205 – Economic & Business Statistics
Chap 4 Hw Assignment (30 points)
1. Students should review Chap 4 Supplemental Note (Excel Lab Solutions) posted in
GaView, Module 4, for guidelines.
2. Each student must submit his/her current original work on this assignment. Students
may contact/see the instructor for assistance on the assignment.
3. Any form of cheating, including copied work or work allowed to be copied or any form of
plagiarism, will result in cancellation of Hw assignment, and a zero score will be
assigned. Late assignment or assignment not submitted/uploaded in GaView
Assignment Submission Folder will not be graded but assigned zero.
4. Provide Microsoft Excel solutions to each question as applicable. Excel solutions must
contain verifiable Excel formulas/commands; credit will not be given for typing manual
solutions into Excel Spreadsheets.
5. Submit/upload your Excel Spreadsheets (one file) with clearly shown answer(s) to each
question in the case below. Students must manually enter data on the Excel
Spreadsheet for this case.
QuickBucks Inc. is a real estate company in Albany, Georgia. The company management
claims that the probabilities that a house listed with the company will be sold under 30 days,
between 30-59 days, between 60-89 days, or at least 90 days are 0.12, 0.35, 0.40, and 0.13,
respectively. A summary of the company’s home sales in the past year is as follows:
Initial Asking Price
Days Listed Until Sold
Under $50,000
at least $100,000
>= 90
(a) Apply Bayes’ theorem and estimate appropriate posterior (revised conditional)
probabilities (in 4 decimal points) for the events in the situation presented. Provide an
Excel Spreadsheet showing your analytical results and the steps taken for your analysis.
(b) With your estimates in your Excel Spreadsheet in (a), answer the following questions (in
4 decimal points):
1. What is the probability that a house will be sold under 30 days, if its initial asking
price is less than $50,000?
2. What is the probability that a house will be sold in 60-89 days, if its initial asking
price is $75,000?
3. What is the probability that a house will be sold in 90 days or more, if its initial
asking price is $150,000?
(c) What are the conditions that must be met for your estimates in (a) above to be valid?
Explain how these conditions are met in this case.

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business and finance


Business statistics


bayes theorem

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