Question

You look at real estate ads for houses in sarasota, florida. many houses range from $200,000 to $400,000 in price. the few houses on the water, however, have prices up to $15 million. which of the following statements best describes the distribution of home prices in sarasota?

a. Normally distributed with a peak around $300,000.
b. Skewed to the left with most houses below $400,000.
c. Bimodal, with clusters around $300,000 and $15 million.
d. Positively skewed with a long tail indicating high-priced outliers.

Answer 1

The distribution of home prices in Sarasota is positively skewed with a long tail due to high-priced outliers, as most homes are under $400,000 while a few waterfront homes reach up to $15 million. b. Skewed to the left with most houses below $400,000.

Step-by-step explanation:

When describing the distribution of home prices in Sarasota, Florida, with many houses ranging from $200,000 to $400,000, but some waterfront houses priced up to $15 million, the best description would be that the distribution is positively skewed with a long tail indicating high-priced outliers.

This is because the large majority of houses are within a much lower price range compared to the few extreme values on the high end. The presence of these high-value homes stretches the tail of the distribution to the right, demonstrating a skewed pattern rather than a symmetric or evenly distributed one.