Question: Below is a payoff table that lists four mortgage options. The numbers in the table represent borrowing costs. All the decision analysis questions that deal

Below is a payoff table that lists four mortgage options. The numbers in the table represent borrowing costs. All the decision analysis questions that deal with mortgage options are based on this narration, t.e., you may reuse the model and the resulting solution to answer related questions, Outcome Decision Alternative Rates Rise Rates Stable Rates Fall 1-year ARM $66,645 $43,650 $36,560 3-year ARM $60,857 $45,698 $42,726 5-year ARM $55,895 $48,894 $46,134 30-year fixed $52,276 $52,276 $52,276 What is the maximum opportunity loss incurred for the 3-year ARM decision alternative? A $2,048 B. $8,581 $18,131 D. $6,166 Adjusted R Square 0.65 Standard Error 27256.33 Observations 105 ANOVA df SS MS F Significance F Regression 1.45474E-11 72737033727 1.85002E-24 Residual 75776592133 742907766 Total 2.21251E+11 Coefficients Standard Error Star P-value Lower 95% Upper 95% Intercept 124078.08 9051.36 13.71 7.09992E-25 106124.75 142031.40 3.23 Lot Cost 2.78 0.23 12.19 1.27124E-21 2.33 Townhouse -47418.98 5915.42 -8.02 1.88449E-12 -59152.19 What is the predicted value for a single-family house with a lot cost of $17,000? -35685.77 O A. 171,338.08 B. 128,600.21 C.76,501.12 D. 123,919.10

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