Until the summer of 2008, the real estate market in Fresno, California, had been booming, with prices skyrocketing. Recently, a study showed the sales patterns in Fresno for single-family homes. One chart presented in the commission€™s report is reproduced here. It shows the number of homes sold by price range and number of days the home was on the market.

a. Using the relative frequency approach to probability assessment, what is the probability that a house will be on the market more than 7 days?
b. Is the event 1-7 days on the market independent of the price $200€“$500?
c. Suppose a home has just sold in Fresno and was on the market less than 8 days, what is the most likely price range for that home?

Transcribed Image Text:

Days on the Market Price Range (S000) -7 8-30 ver 30 Under $200) $200 S500 501 1,000 Over $1,000 125 15 30 200 50 100 400 525 75 125 140 35