ExpertMedium2 marksStructured
AQA GCSE · Question 16.4 · Statistical Measures and Calculations
Using the information given, what is the minimum price for which the house will apparently never sell?
Using the information given, what is the minimum price for which the house will apparently never sell?
How to approach this question
If the house will "never sell", the probability (risk) of not selling must be 1 (or 100%). The risk starts at 0 and increases by 0.05 for every £1000 price rise. Set up an equation to find out how many £1000 rises are needed for the risk to reach 1. Then add this amount to the base price.
Full Answer
Risk of not selling = 1.
Risk increases by 0.05 for every £1000 above £135,000.
Let x be the number of £1000 increases.
0.05 * x = 1
x = 1 / 0.05 = 20.
This means a £20,000 increase is needed.
Minimum price = £135,000 + £20,000 = £155,000.
The risk of not selling is the probability of that event occurring. For an event to be certain (i.e., it will "never sell" means it is certain it will "not sell"), its probability must be 1.
The risk starts at 0 for a price of £135,000.
The risk increases by 0.05 for every £1000 increase in price.
Let 'x' be the number of £1000 increases needed to make the risk equal to 1.
So, we have the equation:
x × 0.05 = 1
To find x, we divide both sides by 0.05:
x = 1 / 0.05
x = 20.
This means the price needs to be increased by 20 lots of £1000, which is £20,000.
The minimum price for the risk to be 1 is:
£135,000 + £20,000 = £155,000.
Common mistakes
✗ Calculating the price increase (£20,000) but forgetting to add it to the original price.
✗ Making a division error (e.g., 1 / 0.05 = 0.05).
✗ Misinterpreting "never sell" as a probability other than 1.
Practice the full AQA GCSE Statistics Foundation Tier Paper 1
47 questions · hints · full answers · grading
More questions from this exam
Q01An ordinary fair dice is rolled.
Circle the probability of rolling a 4.EasyQ02What is the statistical name given to the removal or correction of apparently incorrect values fr...EasyQ03Circle the word that completes this sentence correctly.
This diagram shows data with a negative _...EasyQ04Which of these sample sizes from a large population gives the most reliable sample?
Choose your a...EasyQ05.1Antonio makes and sells flower displays. He keeps a record of each display he makes. Below is one...Easy