Question

Twenty-four homeowners on Long Island reported the following selling prices for their homes: two homes at $11,000,000, four homes at $5,500,000, four homes al $1,000,000 five homes at $600,000, two homes at $450,000 and nine homes at $350,000. a) Determine the mean, median, and modal price.

Answer 1

Mean: $2,293,750

Median: 600,000

Mode: 350,000

Explanation:

1. MEAN

To find the mean, add all 24 prices together and divide by 24

(2 x 11,000,000) + (4 x 5,500,000) + (4 x 1,000,000) + (5 x 600,000)

+ (2 x 450,000) + (9 x 350,000) = $55,050,000

$55,050,000 ÷ 24 = $2,293,750

Mean= $2,293,750

2. MEDIAN

To find the median, put all 24 numbers in order from least to greatest and find which one is in the middle! The number 12 is half of 24, but that is not the middle number because is is evenly split! This means we need to find the average of the 12th and 13th number to truly find the median.

12th number = 600,000

13th number = 600,000

This is easy!

600,000 + 600,000 = 1,200,000

1,200,000 ÷ 2 = 600,000

Median = $600,000

3. MODE

The mode is just the number that appears the most frequently. This is simple. The most common value for a house was $350,000. Nine homes had this price,.

Mode = $350,000