Question

A real estate agent used the mean and MAD to argue that the home prices of Pepper Hill Road were higher and less variable than those of Cinnamon Court. What is the agent's error? He should have used the median and IQR because the data is symmetric. He should have used the median and IQR because of the outlier. He should have compared the median and mean. He should have compared the MAD and IQR.

Answer 1

The median and IQR are better statistical measures when a data set has outliers.

Explanation:

Using the median, you can infer that the home prices for Cinnamon Court are higher than those of Pepper Hill Road. Using the IQR you can infer that home prices on Cinnamon Court are less variable than on Pepper Hill.

Answer 2

He should have used the median and IQR because of the outlier.

Explanation:

The better statistical measures to employ when a data set contains outliers are the median and IQR.

From the question, it is possible to draw an inference that the home prices for Cinnamon Court are higher than those of Pepper Hill Road by employing the median.

Also, it is possible to draw an inference that home prices on Cinnamon Court are less variable than on Pepper Hill by using the IQR.