Chapter 1.3, Problem 84E

To determine

To explain:the mean and the median.

Answer to Problem 84E

$216,400 is the mean

$172,600 is the median.

Explanation of Solution

Given:

The selling prices of existing single-family homes sold in $216,400 and $172,600.

Most houses will have roughly the same selling prices, while some will have a selling price that is much higher.

Thus the distribution of selling prices will be right-skewed.

In a right-skewed distribution, we know that the mean is greater the median, because the mean is influenced by the very high salaries and the median is not:

  $\begin{array}{l}\overline{x}=\$216,400\\ MEDIAN=\$172,600\end{array}$