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45 votes
45 votes
Albert sold five house this month. The list below shows the prices of the houses sold. $65000,$65000,$98000,108000,225000. Which measure best describes the price of the houses sold. A) median of 98,000 B) mean of 112,000 C) range 130,000 D) mode 65,000

User Kunal Vashist
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1 Answer

13 votes
13 votes

Answer:

Since I just sold my home, the mean was most important to me. It tells me what I would most likely get and where to place my opening bid.

Explanation:

The median and the range has their uses. So does the range.

Albert himself has the most interest in the mean providing his commission is a constant one (usually 6% -- at least in Canada). His commission would be 5 times the average * 6%.

A buyer might have an entirely different view. I think the range would interest him the most. That tells him he has a variety of choices and his economics would determine what he will choose.

I'm sure that the real estate company would be most concerned with range as well. It would tell them where they should focus their advertising. They might want to focus on the mode because there are 2 choices there or the median which is quite a ways away.

User Bezmax
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