The asking price for homes in the Winnipeg real estate market 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, which of the following statements is true?
A) The coefficient of variation for Winnipeg is more than that for Moncton.
B) The Moncton home has a standardized value that is relatively closer to zero.
C) The coefficient of variation is the same for both cities.
D) The Winnipeg home has a standardized value that is relatively closer to zero.
E) Both homes have the same z-score.

Question

Quizplus · Accepted Answer

The standardized value for the Moncton home is (225000-188468)/8230 = 4.47, which is relatively closer to zero than the standardized value for the Winnipeg home, which is (225000-286455)/11200 = -5.57.

The Asking Price for Homes in the Winnipeg Real Estate