Hi Jason,
In this question you are being asked to determine the value of numerals by their position in terms of their place value.
All of the other information about the people and sleep is irrelevant.
5040- the numeral 4 is in the tens place and means 4 tens, or 40. (4x10)
4670- the numeral 4 is in the thousands place and means 4 thousands, or 4000. (4x1000)
To find how many times greater 40 is than 4000, we ask how many times must we multiply 40 to equal 4000.
Division is the inverse operation of multiplication, so first we divide 4000 by 40, which equals 100.
Remembering our inverse operations, we know that 40 x 100=4000.
Since we must multiply forty 100 times to equal 4000, we find the value of 4 in 4670 is 100 times greater than the value of 4 in 5040.