Chapter 4, Problem 63CR

Because some homes have selling prices that are much higher than most, the median price is usually used to describe a “typical” home price for a given location. The three accompanying quotes are all from the San Luis Obispo Tribune, but each gives a different interpretation of the median price of a home in San Luis Obispo County. Comment on each of these statements. (Look carefully. At least one of the statements is incorrect.)

1. a. “So we have gone from 23% to 27% of county residents who can afford the median priced home at $278,380 in SLO County. That means that half of the homes in this county cost less than $278,380 and half cost more.” (October 11, 2001)
2. b. “The county’s median price rose to $285, 170 in the fourth quarter, a 9.6% increase from the same period a year ago, the report said. (The median represents the midpoint of a range.)” (February 13, 2002)
3. c. “‘Your median is going to creep up above $300,000 if there is nothing available below $300,000,’ Walker said.” (February 26, 2002)