Give a reason why the house may actually sell at this minimum price.

The calculation that the house will "never sell" at £155,000 is based on a simple linear probability model. This model is a simplification of reality and has limitations. A key reason the house might still sell is that **the model may not be accurate at extreme values**. The relationship where risk increases by 0.05 for every £1000 might only be valid within a certain price range. Other reasons include: - **Changing Market Conditions:** The housing market could change unexpectedly, making £155,000 seem like a reasonable price. - **Specific Buyer Needs:** A particular buyer might have a strong personal reason to want that specific house (e.g., it's next to a relative) and be willing to pay a premium for it, regardless of the general market model.