Friday, January 23, 2009

It all started small

Those brokers amassed 1,313 sales in the three years. Through December, 455 of those properties were seized by banks. With foreclosure rates between 25 and 60 percent, the 21 brokers strayed from even the Back Gate's above-average foreclosure rate, which is 15 percent, by three standard deviations. Such large deviations from the average are almost impossible to achieve randomly, said Jim Lackritz, a statistics professor at San Diego State University. And of those 21, three brokers shattered the standard of impossibility, veering off the average rate by 10 standard deviations. "It's at that point where you have to use the Jim Carrey line from 'Dumb and Dumber': 'So you're saying there's a chance?' " Lackritz said. "Yeah, but not in your lifetime or mine."
You don't say! Deep statistics in all its glory.

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