Question

The U.S. Department of Housing and Urban Development​ (HUD) uses the median to report the average price of a home in the United States. Why do you think HUD uses the​ median? Choose the correct answer below. A. HUD uses the median because the data are skewed left. B. HUD uses the median because the data are skewed right. C. HUD uses the median because the data are bimodal. D. HUD uses the median because the data are symmetrical.

Answer 1

B) HUD uses the median because the data are skewed right.

Explanation:

Let's talk about median: it is a simple way to measure a central tendency. To find it, we set observations from the smallest value to the largest. In case there was an odd number of observations, the median is the middle value. If the number of observations is even, then we consider the median as the average of the two middle values. If data are skewed left or right, there are extreme values in the​ tail, which tend to pull the direction of it. If the distribution of the data is skewed​ right, then there will be large observations in the right tail. These tend to increase the value of the​ mean, while effect on the median is little or minimum.