Question

Explain why the measure was selected to report on the data set. The mean price of homes sold in the area is $197,000. Home Prices $124,000 $99,000 $130,000 $122,000 $450,000 $106,000 $114,000 $497,000 $131,000 The mean price make homes seem to have a higher value than the median price because of the outliers. The mean price make homes seem to have a lower value than the median price because of the outliers. The mean and the median of the data set have the same value. The mean and the median of the data can not be calculated.

Answer 1

Only one says the mean s higher than the median, so choose that one.

Explanation:

Putting them in order gets yout he following list

$99,000

$106,000

$122,000

$124,000

$130,000

$131,000

$114,000

$497,000

$450,000

The average changes if you increase or decrease any of the prices, thought he median does not unless you mess witht he middle value 130,000. Since it mentions the outliers lets look at those. The outliers are the last two because they are more than 3 times the next highest. So, increasing or decreasing these will effet the average in the same way. Also, keep in mind what the median is, and if the verage as is is higher or lower than it., that pretty much answers your question.