Introduction

A local commercial real estate business, Keystone Properties, has hired you as a quantitative analyst.The owners are concerned that their traditional way of making decisions (experience and gut feel, generally) is not allowing them to maximize the business's potential.They have hired you to help them make a variety of sound decisions based on a scientific approach.

The company has provided you with as much information as they have, and it is up to you to determine the best quantitative approach to answering their questions.The company has also made it clear that it is crucial that you explain analysis and calculations in such a way that a group of people unfamiliar with quantitative analysis can understand what you are doing and feel comfortable with the results.If you just provide a numerical answer to their questions, while still helpful, this will not meet their expectations for the project.

Deliverable

Keystone has requested that you answer their questions in the form of a business report in MS Word format.Simply typing in answers to their questions below will be construed as a lack of professionalism. The writing must be free of errors and easy to understand for someone unfamiliar with quantitative analysis. The exact design of the report is up to you, as Keystone does not really care about the aesthetics as long as you answer all of their questions in an organized and coherent report.Keystone specifically requests that you include any equations and calculations that you had done to be completely transparent.Any graphs or diagrams can be included in the body of the report or in an appendix as you see fit.

2.Keystone puts a lot of work into showcasing properties to potential buyers (something like a personal open house). Each showcase results in either a 'success' (the buyer purchases the property) or a 'failure' (the buyer refuses to buy the property).Historically, Keystone figures that on any given showcase there is a 30% chance they will be successful and make a sale.Keystone has 7 showcases planned for this month, and they would like to explore some probabilities surrounding these showcases to help them manage this process and forecast revenues.In particular, Keystone wants to see at least two of these showcases turn into sales.What are the chances that exactly 3 of the showcases will result in a sale?What are the chances that they will make at least 3 sales?What are the chances that they will make fewer than 2 sales? Sometimes buyers will request a second viewing of the property.Based on historical evidence, buyers ask for a second viewing on 40% of successful showcases and on only 20% of unsuccessful showcases.What are the chances that a showcase will be successful, given that a potential buyer has asked for a second viewing?