Suppose a developer is interested in building a new residential subdivision. Through his market research, the developer has determined that the target market segment potential in year 1 consists of 160 households. If the developer projects that he will be able to sell 24 homes in the first year, what is his assumed capture rate?
A) 6.67%
B) 15%
C) 24%
D) 85%

Question

Quizplus · Accepted Answer

The capture rate is calculated by dividing the number of homes the developer expects to sell by the total market segment potential, then multiplying by 100 to get a percentage. So, $ \frac{24}{160} \times 100 = 15\% $.

Suppose a Developer Is Interested in Building a New Residential