Question

The mean and median selling prices of existing single-family homes sold in July 2012 were $263,200 and $224,200. Which of these numbers is the mean and which is the median? Explain how you know.

Answer 1

The mean selling price of existing single-family homes sold in July 2012 is $263,200, while the median selling price is $224,200. The mean is the average of the prices, while the median is the middle value when the prices are arranged in numerical order.

Step-by-step explanation:

The mean selling price of existing single-family homes sold in July 2012 is $263,200, while the median selling price is $224,200.

To understand which number represents the mean and which represents the median, we need to know the definitions of mean and median.

The mean is the average of a set of numbers and is found by adding up all the numbers in the set and dividing the sum by the total count of numbers. In this case, the mean selling price is $263,200, which means that if we were to add up the selling prices of all the homes sold in July 2012 and divide the sum by the total count, we would get $263,200.

The median is the middle value in a set of numbers when they are arranged in numerical order. If the set has an odd number of values, like in this case, the median is the value that falls exactly in the middle. In the case of the median selling price of $224,200, it means that half of the homes were sold for prices higher than $224,200 and half were sold for prices lower than $224,200.

Therefore, in this scenario, $263,200 is the mean selling price and $224,200 is the median selling price.

Answer 2

The correct answer is:

The mean is $263,200 and the median is $224,200.

Explanation:

In the housing market, we generally see most values nearly the same. However, some values are typically much higher than others. Between the mean and the median, the mean is the most affected by an outlier; if we have a number much higher than the others, it will cause the mean to raise. Thus the mean is the higher value.