The expenses for Jorge, a real estate agent, to list, advertise, and attempt to sell a house

Question:

The expenses for Jorge, a real estate agent, to list, advertise, and attempt to sell a house are $1400. If Jorge succeeds in selling the house, he will receive a commission of 6% of the sales price. If an agent with a different company sells the house, Jorge still receives 3% of the sales price. If the house is unsold after 3 months, Jorge loses the listing and receives nothing. Suppose that the probability that he sells a $150,000 house is 0.2, the probability that another agent sells the house is 0.5, and the probability that the house is unsold after 3 months is 0.3. Determine Jorge’s expectation if he accepts this house for listing. Should Jorge list the house?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

Question Posted: