The asking price for homes on the real estate market in Winnipeg 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 Moncton are $188,468 and $8,230, respectively. Recently, one home sold in each city where the asking price for each home was $225,000. Based on these data, what conclusions can be drawn?
A) The two homes have the same z-score.
B) The distribution of the asking prices is symmetric in both cities.
C) The home sold in Winnipeg is relatively further from its mean than the home sold in Moncton.
D) The asking price of homes in Moncton is less variable than those in Winnipeg.
E) The z-score for Winnipeg is higher than that of Moncton.

Question

Quizplus · Accepted Answer

To compare the distance of the two homes from their respective means, we need to calculate their z-scores. For Winnipeg: z = (225000 - 286455) / 11200 = -5.00 and for Moncton: z = (225000 - 188468) / 8230 = 4.43. Since z-scores are measured in terms of standard deviations from the mean, we can conclude that the home sold in Winnipeg is relatively further from its mean than the home sold in Moncton. None of the other statements can be concluded based on the data given.

The Asking Price for Homes on the Real Estate Market