Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000. Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000.

a. She should make both improvements to her house.
b. She should replace the carpeting but not replace the roof.
c. She should replace the roof but not replace the carpeting.
d. She should not make either improvement to her house.

Katie is planning to sell her house. So before selling, she wants to make some changes or upgrades in her house to get a better price for it. She has two options in consideration.

Change the carpeting costing her $2500 and increasing the value of house by $3000
Change the roof costing her $9000 and increasing the value of house by $7000

It is clear from the above stats that is she goes for changing the carpeting, she would have an increase in her selling price of home by $500, but if she goes for changing the roof, it will cost her more and if we calculate the trade off, she will face a loss of $2000, as her cost of changing the roof is $9000 and it would increase the value by $7000 only, which will cost her a loss of $2000.

So she should go with the option B of changing the carpeting but not replacing the roof.

Learn more about trade off at:

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