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(Solved): A small bank survived the 2008 banking crisis. The bank became very cautious after that period. No ...



A small bank survived the 2008 banking crisis. The bank became very cautious after that period. Now before any real estate loan above $200,000 is made the

bank has 5 appraisers evaluate.

The three following requests for loans (Elm Street, Main Street, and Fair Lane) have come to the bank for the monthly board meeting.

The requests and the appraisers' values are in the following table.

Elm Street Main Street Fair Lane
Smith $ 400,200 $ 563,456 $ 287,000
Hatch $ 406,240 $ 565,613 $ 302,752
White $ 424,206 $ 566,000 $ 315,176
Jones $ 408,430 $ 571,988 $ 309,599
Salla $ 414,012 $ 573,578 $ 314,500

The bank has set the threshold as 0.03 or 3% for the coefficient of variation.

Which of the loans Elm Street, Main Street and Fair Lane, will be suitable for a loan?

List the answer for the acceptable loans with the first being the best. (Elm, Main, or Fair will work)



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To determine which loan is suitable for a loan, we need to calculate the coefficient of variation (CV) for each property. The CV is the ratio of the s
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