ExpertMedium2 marksStructured
AQA GCSE · Question 16.1 · Statistical Measures and Calculations
Natalie is selling her house.
At an asking price of £135 000, she is advised that the house would definitely sell within one month.
For each additional £1000 on the asking price, the risk of not selling within any one month increases by 0.05.
Natalie wants £150 000 for her house.
At £150 000, what is the risk that she will not sell her house within one month?
Natalie is selling her house.
At an asking price of £135 000, she is advised that the house would definitely sell within one month.
For each additional £1000 on the asking price, the risk of not selling within any one month increases by 0.05.
Natalie wants £150 000 for her house.
At £150 000, what is the risk that she will not sell her house within one month?
How to approach this question
1. Calculate the difference between Natalie's desired price and the base price.
2. Determine how many £1000 increments this difference represents.
3. Multiply the number of increments by the risk increase per increment (0.05).
4. This gives the total risk of not selling in one month.
Full Answer
Price increase = £150,000 - £135,000 = £15,000.
Number of £1000 increases = £15,000 / £1000 = 15.
Increase in risk = 15 * 0.05 = 0.75.
The initial risk at £135,000 is 0 (it would definitely sell).
Total risk = 0 + 0.75 = 0.75.
The base price with zero risk of not selling in one month is £135,000.
Natalie's asking price is £150,000.
Step 1: Find the additional amount over the base price.
Additional amount = £150,000 - £135,000 = £15,000.
Step 2: Find how many £1000 increments this represents.
Number of increments = £15,000 / £1000 = 15.
Step 3: Calculate the total increase in risk.
The risk increases by 0.05 for each £1000 increment.
Total risk increase = 15 × 0.05 = 0.75.
Since the risk at £135,000 was 0, the new risk of not selling within one month is 0.75 (or 75%).
Common mistakes
✗ Calculating the price difference incorrectly.
✗ Making a multiplication error (e.g., 15 * 0.05 = 7.5).
✗ Misunderstanding the question and adding the risk on top of 1.
Practice the full AQA GCSE Statistics Foundation Tier Paper 1
47 questions · hints · full answers · grading
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