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Statistics and Probability

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Moderate

Relative Standing 1

STATS-NLZJMG

You have been offered two jobs in California. The one in Los Angeles has a starting salary of $\$75,000$ and the one in San Francisco is offering $\$80,000$.

Assume the average cost of living in LA is $\$60,000$ with a standard deviation of $\$7,500$, and the average cost of living in San Francisco is $\$90,000$ with a standard deviation of $\$5,000$. Which is the better job offer?

A

Los Angeles

B

San Francisco

C

One is not better than the other.

D

We cannot tell from the information given.