Question

The salesman has observed that many students are looking for cars that cost less than $5,000. If he decides to also deal in cars that cost less than $5,000 and projects selling 200 of them over the next 10 years, how will the distribution be affected? A. The mean will shift to the right. B. The mean and the median will be the same. C. The median will shift to the right. D. The mean will shift to the left.

Answer 1

D. The mean will shift to the left.

Explanation:

Given that the price range of the car is between $5000 and $45000 ;

Hence, if the demand for cars that cost less than $5000 is in high demand, such that about 200 cars was sold ; This will lead to a shift in the mean price of car, $5000 towards the $5000 value. Since $5000 is to the left, then the mean price will shift to the left of the distribution.