Principals III Flashcards
Statistics
A body of principles and methods and concerned with extracting useful information from numerical data.
Measures of Central Tendency
Mean
Median
Mode
Inferential Statistics
The process of drawing conclusions about population characteristics through analysis of sample data.
Mean
A measure of central tendency.
The sum of values for a variable in a sample or population divided by the number of items in the sample population.
The arithmetic average.
Simple average.
Median
A measure of central tendency identified as the middle value in an ordered array of numberical values.
Mode
A measure of central tendency, the most frequent, or typical, value in an array of numbers; a positional average that is not affected by extreme values.
It is the most descriptive average and easily identified when the number of items is small; if the sample is too small, however, none of the values may be repeated and no mode exists.
A rectangular lot contain 2.34 acres. It has a frontage of 379.22 feet. What is its depth?
a. ) 214.68
b. ) 261.97
c. ) 268.79
C - 268.79
2.34 x 43560 = 101,930.40
101,930.40 / 379.22 = 268.79
Your living room measures 14 x 24 feet. You want to re-carpet it. The carpet company says it will cost $15.50 per square yard for the pad. How much will it cost you? (HINT: There are 9 square feet in a yard)
a. ) $681.27
b. ) $778.23
c. ) $813.55
C - $681.27
14 x 24 = 336 sf / 9 = 37.33 sy
$15.50 / $2.75 = $18.25 x 37.33 = $681.27
You want to buy a house for $188,500. You can get a loan for 95% of value. You will also have to pay 2.5 points on the loan. How much will you have to put down at the closing?
a. ) $9,425.00
b. ) $12,784.50
c. ) $13,901.88
C - $13,901.88
$188,500 x .95 = $179,075 mortgage
$179,079 x .025 = $4,476.88 in points
$188,500 x .05 = $9,425 down payment
Points $4,476.88 + down payment $9,425 = $13,901.88
Your house is valued at $214,000. You want to insure it for 80% of value and the insurance will cost $5.50 per thousand. How much will your insurance cost PER QUARTER?
a. ) $157.98
b. ) $235.40
c. ) $941.60
B - $235.40
$214,000 x .80 = $171.200
171.2 x $5.50 = $941.60
$941.60 / 4 = $235.40
You sold your house for $260,000. You agreed to pay 2 points on the 90% mortgage that the buyer received. You had to pay $600 in legal fees plus a 5.5% sales commission. How much did you net for the property?
a. ) $240,420
b. ) $244,560
c. ) $246,799
A - $240,420
$260,000 x .90 = $234,000
$234,000 x .02 = $4,680 points
$260,000 x .055 = $14,300
$600 + $4,680 + $14,300 = $19,580
$260,000 - $19,580 = $240,420
In the previous problem, assume that you had purchased the property 3.5 years before the sale (at $260,000) for $185,000. What was your average annual percentage gain on the property? (HINT: Use the net proceeds you calculated from the previous problem.)
a. ) 6.57%
b. ) 8.57%
c. ) 11.41%
B - 8.57%
$240,420 / $185,000 = 1.30 or 30% total gain
30% / 3.5 = 8.57%
You apply for a mortgage and the lender will allow you to spend up to 29% of your annual income for housing costs. These housing costs will include your mortgage, property taxes and insurance. Your income is $1,635 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?
a. ) $883.45
b. ) $965.22
c. ) $1,027.33
C - $1,027.33
$1,635 x 26 (2 week periods) = $42,510 (annual earnings)
$42,510 x .29 = $12,327.90
$12,327.90 / 12 = $1,027.33 per month
Two years ago, you bought a property for $375,000. Values increased in that area by 8% the first year and 6% the second year. How much is your property worth today?
a. ) $418,700
b. ) $429,300
c. ) $435,600
B - $429,300
$375000 x 8% = 30000 + 375000 = $405,000
$405000 x 6% = 24300 + 405000 = $429,300
A rectangular lot has 128 feet frontage on a commercial highway and runs back 342 feet deep. It sold for $250,000. What did it sell for per front feet? What did it sell for per square foot?
a. ) $1,953.13 / $5.71
b. ) $1,893.33 / $5.17
c. ) $1,984.56 / $7.32
A - $1,953.13 / $5.71
$250,000 / 128 = $1,953.13 per front foot
128 x 342 = 43,776 sf
$250,000 / 43,776 = $5.71 sf
