Question

The asking price for homes on the real estate market in Baltimore has a mean value of​ $286,455 and a standard deviation of​ $11,200. The mean and standard deviation in asking price for homes in Denver are​ $188,468 and​ $8,230, respectively.​ Recently, one home sold in each city where the asking price for each home was​ $193,000. Based on these​ data, which of the following conclusions can be​ made?(A) The two homes have approximately the same standardized values.(B) The distribution of asking prices in the two cities is bell-shaped.(C) The house in Baltimore is relatively farther from the mean than the house in Denver.(D) The asking prices of homes in Denver is less variable than those in Baltimore.

Answer 1

Answer:

c)

Step-by-step explanation:

The asking price in Baltimore has a mean value of $286,455 and a standard deviation of $11,200; this means that most houses prices fall between $275,255 and $297,655.

Similarly, the mean value in Denver is $188,468 and a standard deviation of $8,230; most houses prices fall between $180,238 and $196,698.

The problem tells us that one home sold in each city where the asking price for each home was $193,000. In the case of Denver this would be expected (values usually fall between 180,000 and 196500 approximately).

However, the house in Baltimore is relatively farther from the mean than the one in Denver because the price is more than one standard deviation away from the mean.

Therefore, the correct answer is C. The house in Baltimore is relatively farther from the mean than the house in Denver.