Define a statistic as closed listings divided by closed plus expired listings over the same period. There were 45 closed listings and 15 expired listings. What ratio results? This definition excludes other listing outcomes.
Correct Answer
C) 0.75 ratio
Closed share among the specified closed-or-expired outcomes = 45/(45 + 15) = 0.75. Keep the stated numerator, denominator and units distinct. Common errors: inverting the ratio (closed ÷ expired) gives 3.00 ratio; reporting the expired share instead of the closed share gives 0.25 ratio; dividing expired by closed gives 0.33 ratio.
Why This Is the Correct Answer
Option C is correct because the defined statistic is closed listings divided by closed plus expired listings. That is 45/(45 + 15) = 45/60 = 0.75. The result is the closed share among the closed-or-expired outcomes.
Why the Other Options Are Wrong
Option A: 0.25 ratio
Option A, 0.25 ratio, reports the expired share instead of the closed share: 15/60 = 0.25. The definition puts closed listings in the numerator, so the correct figure is 45/60 = 0.75.
Option B: 0.33 ratio
Option B, 0.33 ratio, divides expired by closed: 15/45 = 0.33. The definition requires closed listings divided by closed plus expired, which is 45/60 = 0.75.
Option D: 3.00 ratio
Option D, 3.00 ratio, inverts the comparison by dividing closed by expired: 45/15 = 3.00. The denominator must be closed plus expired listings, so the correct result is 45/60 = 0.75.
Part over whole
A share is the part you care about over the whole group you defined. Here the part is closed listings and the whole is closed plus expired.
How to use: Use this check whenever a ratio is described as a share of a combined group.
Exam Tip
Write the defined numerator and denominator before you calculate. Several answer choices are often built from swapping or inverting those two pieces.
Common Mistakes to Avoid
- -Dividing closed listings by expired listings instead of by the combined total
- -Reporting the expired share when the question asks for the closed share
- -Dividing expired by closed listings
Concept Deep Dive
Analysis
This question tests whether you can apply a defined ratio exactly as stated. The numerator is closed listings and the denominator is closed plus expired listings, so the calculation is 45 divided by (45 + 15), or 45/60. Identify the numerator and the denominator before dividing, and ignore listing outcomes the definition excludes.
Background Knowledge
Appraisers use listing-outcome statistics, such as closed, expired and withdrawn listings, as supporting evidence about market conditions. A share statistic places one outcome over a total of the included outcomes, so its value falls between 0 and 1. Because these measures can be defined in different ways, the stated definition controls the calculation.
Real-World Application
An appraiser reviewing a market segment finds 45 closed and 15 expired listings over six months. A closed share of 0.75 suggests most listings that reached an outcome sold. The appraiser would still compare this with pricing, marketing time and other data before drawing conclusions.
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