Question

The Seddon family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of:________.

Answer 1

Answer:

B) regression

Explanation:

The theory of regression states that the worth of a much more expensive home will reduce due to less expensive homes entering the area. Therefore, if your property is worth $1,500.00 and you're flanked by $1,000,000 houses, the value of your house is moving down.