4. Properties that are for sale are valued on a comparable price basis similar to the way stocks are valued on a relative basis. Assume you saw that a carriage house was for sale in Murray Hill neighborhood of Manhattan. You do research and find that 5 carraige houses traded in Midtown Manhattan in the past year. The prices, in millions, and area of each house in SF, were: $5.0M for 5,000 SF; $5.4M for 5,200 SF; $5.05M for 4,900 SF; $4.9M for 5,100 SF; and $4.8M for 4,800 SF. The house that you would like to buy measures 5,500 SF and does not have an asking price. What is a reasonable estimate of the value of the house that you'd like to buy in $M based on the average price/SF of this sample set?

1. 6.443
2. 5.532
3. 6.080
4. 6.00