Solve the problem.
-Part of the Housing Price Index for 1999 is given below: $$\begin{array} { l | c | c | c | c }
\text { City } & \text { Palo Alto, CA } & \text { Sioux City, IA } & \text { Boston, MA } & \text { Spokane, WA } \
\hline \text { Index } & 365 & 47 & 182 & 78
\end{array}$$ Suppose that wages are directly related to housing values. If the hourly wage for a job is $14.81 per hour in Spokane,
What would the job pay in Sioux City?
A)$24.58
B)$8.92
C)$5.89
D)$9.77

Question

Solve the problem.
-Part of the Housing Price Index for 1999 is given below: $$\begin{array} { l | c | c | c | c } 
\text { City } & \text { Palo Alto, CA } & \text { Sioux City, IA } & \text { Boston, MA } & \text { Spokane, WA } \
\hline \text { Index } & 365 & 47 & 182 & 78
\end{array}$$ Suppose that wages are directly related to housing values. If the hourly wage for a job is $14.81 per hour in Spokane,
What would the job pay in Sioux City?
A)$24.58
B)$8.92
C)$5.89
D)$9.77

Quizplus · Accepted Answer

The wages in different cities can be compared by using the ratio of their Housing Price Index values. The ratio of the index for Spokane to Sioux City is $78:47$. If the wage in Spokane is $14.81, to find the equivalent wage in Sioux City, we use the formula: $$Wage_{Sioux City} = Wage_{Spokane} \times \frac{Index_{Sioux City}}{Index_{Spokane}}$$ Substituting the given values: $$Wage_{Sioux City} = 14.81 \times \frac{47}{78} = 8.92$$

Solve the Problem Suppose That Wages Are Directly Related to Housing Values