The Table lists recently sold houses in the neighbourhood The selling prices and improvements the house had at the time of improvements are shown For example the first house in the table sold for $181

To determine which home improvement will be the most profitable, we need to calculate the net profit for each improvement. The net profit is the selling price minus the cost of the improvement.

For example, for the first house: Net Profit = Selling Price - Cost of Bathroom = $181,000 - $10,000 = $171,000

We can calculate the net profit for each improvement for each house and then find the highest net profit.

House 1: Bathroom: $171,000 Kitchen: $171,000 Pool: $151,000 Wood Floors: $166,000 New Paint: $170,000

House 2: Bathroom: $198,000 Kitchen: $198,000 Pool: $183,000 Wood Floors: $198,000 New Paint: $198,000

House 3: Bathroom: $146,000 Kitchen: $146,000 Pool: $116,000 Wood Floors: $141,000 New Paint: $145,000

House 4: Bathroom: $164,000 Kitchen: $164,000 Pool: $134,000 Wood Floors: $159,000 New Paint: $163,000

House 5: Bathroom: $190,000 Kitchen: $190,000 Pool: $160,000 Wood Floors: $185,000 New Paint: $189,000

From the calculations above, we can see that the most profitable home improvement to build would be the Kitchen improvement, as it consistently yields the highest net profit across all houses. Therefore, building a new kitchen would be the most profitable improvement for you to make